ExxonMobil obtains Amdal permit for Banyu Urip expansion

ExxonMobil has obtained the required Amdal environmental permit to facilitate expansion of production at the Banyu Urip field in Cepu block, East Java Province, Bisnis Indonesia reported on Tuesday.

Vice President for Public and Government Affairs at ExxonMobil Indonesia, Erwin Maryoto said that the Ministry of Environment and Forestry Affairs has issued the required Amdal, allowing the company to increase Banyu Urip oil production up to 220,000 bpd.

The field?s production currently stands at 185,000 bpd. Exxon through subsidiary ExxonMobil Cepu Ltd is the operator of the Cepu block. The company applied for a new Amdal in March of this year to increase Banyu Urip production rate to around 200,000 bpd following discovery of recoverable reserves from initial estimate of 450 million barrels to 725 million barrels. Banyu Urip?s production at Cepu block accounted for about 25 percent of the national oil production of 808,000 bpd.

During a meeting with ExxonMobil senior officials in the US last week, Minister of Energy and Mineral Resources Ignasius Jonan asked the company to increase Banyu Urip production to 300,000 bpd.

Erwin, however, said that the new proposal must be evaluated first particularly regarding the capacity of the central processing facility, and the potential development of other wells.

He said that the company will not have to provide much additional funding to increase production to 220,000 bpd. (*)