Exxon to submit AFE for Kedung Keris field

By Godang Sitompul

ExxonMobil Cepu Ltd, the operator of the Cepu block in Central and East Java provinces, will submit an Authorization for Expenditure (AFE) for the block?s Kedung Keris field for upstream authority SKK Migas to approve.

ExxonMobil Indonesia?s Vice President for Public and Government Affairs Erwin Maryoto said the firm believed SKK Migas will grant its approval since the firm only planned to drill one well.

?Expenditure for Kedung Keris is small in amount since it is only for the drilling of one well as there is no need to build a Central Production Facility (CPF). All the production from the field will be taken to Banyu Urip,? Erwin said.

Meanwhile, Erwin said, the firm is waiting for the government to decide on the price of gas from Jambaran-Tiung Biru (JTB) unitized field, also located in Cepu block, which is operated by PT Pertamina EP Cepu, a subsidiary of PT Pertamina EP. ?The price is now being discussed by SKK Migas and the Directorate General of Oil and Gas. We are waiting for the government to decide,? he said.

A source told Petromindo.com that the problem is that state-owned fertilizer firm PT Pupuk Kujang Cikampek (PKC) does not feel happy with the price for the gas that has been proposed. Furthermore, the firm wants the gas from the field to be delivered starting in 2019-2020 rather than 2018 as initially scheduled because the expansion project at PKC?s plant is expected to be completed later than the initial schedule.

Editing by Johannes Simbolon