ExxonMobil says Cepu capable of producing over 200,000 bpd
Wednesday, May 25 2016 - 02:52 PM WIB
ExxonMobil Cepu Ltd (EMCL), the operator of Cepu block in Central and East Java provinces, said the block is able to raise its production to above 200,000 barrels per day (bpd) if the government grants environmental license (Amdal) for such production level.
At present, the block?s production stands at 185,000 bpd.
?The block with its existing reserve is able to produce more. If the government asks us to do so, we can do it, provided that the block?s Amdal license is revised. The existing Amdal license only allows it to produce up to 185,000 bpd,? EMCL?s VP of Public and Government Affairs Erwin Maryoto said.
As for the production facilities, they need only small modification to allow for a production of above 200,000 bpd. ?There is no need for additional investment for additional equipment,? he said.
Aside from a revision of Amdal, the firm will also need an approval from upstream authority SKK Migas as any revision of Work Program & Budget (WP&B) needs to be approved by the agency, he said, adding that at present, the firm needs a revision of Amdal more urgently than a permit from SKK Migas for a revision of WP&B as permit for WP&B revision may come later.
According to Erwin, the recoverable reserve of Cepu bloc has turned out to be larger than the initial estimation.
?We are talking with SKK Migas on the recoverable reserve figures. The agency is now reviewing the figures. There is a significant addition. That is only from one reserve. The (amount of) oil in place has not changed. But, the amount recoverable is larger than the previous estimate,? he said.
He noted however that an increase in production does not result in a shorter production life for the block.
?Logically, the faster production, the shorter is the production life. However, since there is a larger recoverable reserve compared to the one stated in the Plan of Development (PoD), it (the production life) will remain the same. The peak production will thus not become shorter. If anything, it could become longer,? he said.
EMCL owns a 45 percent interest in the Cepu block. PT Pertamina E&P Cepu (PEPC), a subsidiary of state-owned oil and gas PT Pertamina, holds another 45 percent interest in the block, while the remaining 10 percent are held by minority local investors.
Editing by Johannes Simbolon