ExxonMobil increases oil production from Banyu Urip

By Febry silaban

ExxonMobil Cepu Limited, the operator of Cepu PSC, announced on Monday that daily oil production at the Banyu Urip project in Bojonegoro, East Java, has increased to more than 130,000 barrels following a smooth startup of the onshore central processing facility.

Banyu Urip consists of 45 wells, producing from three well pads, an onshore central processing facility, a 95-kilometer onshore and offshore pipeline, and a floating storage and offloading vessel and tanker loading facilities in the Java Sea. With the central processing facility now online, production will continue to increase over the coming months.

Banyu Urip is expected to produce 450 million barrels of oil over the project?s lifetime. Once full field production levels are safely reached, the project will represent approximately 20 percent of Indonesia?s 2016 annual oil production target. ExxonMobil, partnering with PT. Pertamina EP Cepu (PEPC) and the Cepu Block Cooperation Body (BKS PI Blok Cepu), commenced production from Banyu Urip in late 2008 and the output was increased in 2014 and 2015 thanks to the installment of new facilities.

?This project illustrates ExxonMobil?s project management expertise as well as the capabilities of local suppliers and businesses,? said Dan Wieczynski, project executive of ExxonMobil Cepu Limited.

?Banyu Urip is helping maximize the value of Indonesia?s energy resources and is creating significant and lasting benefits,? said Amien Sunaryadi, head of SKK Migas.

Banyu Urip has been successfully developed by five Indonesia-led contractor consortiums responsible for engineering, procurement and construction. Together they employed more than 17,000 Indonesian workers at peak levels, representing 95 percent of the project?s overall workforce, and utilized more than 460 Indonesia subcontractors.

?We appreciate the ongoing support of the government of Indonesia, SKK Migas, our Cepu Block partners PT. Pertamina EP Cepu and the Cepu Block Cooperation Body, our contractors and the community,? said Jon M. Gibbs, president of ExxonMobil Cepu Limited.

Operator ExxonMobil Cepu Limited has a 45 percent interest in Banyu Urip, with PEPC having 45 percent, and four local government entities under BKS PI Blok Cepu ? PT. Blora Patragas Hulu, PT. Petrogas Jatim Utama Cendana, PT. Asri Darma Sejahtera, and PT. Sarana Patra Hulu Cepu ? having the remaining 10 percent. PSC Contractors are contractors operating government owned upstream oil and gas projects. SKK Migas oversees these contractors in carrying out its activities.

Editing by Johannes Simbolon