ExxonMobil says Cepu oilfield has commercial gas reserve

US oil and gas giant ExxonMobil Corp said on Thursday that its oilfield in Cepu technical contract (TAC) area in East Java also contained natural gas reserve at commercial level.

?Even though the size is not as big as the oil reserve, Cepu?s gas reserve is in the commercial size. However, I can not tell how big it will be as exploration is still continuing,? Alan Routh, ExxonMobil Oil Indonesia?s senior vice president of gas marketing said on the sidelines of a seminar.

Cepu TAC is located in the industrial island of Java, where demand for natural gas is constantly increasing.

In April, Exxon Mobil Corp. announced a major oil discovery in Cepu TAC following the completion of the Banyu Urip-3 well with estimated recoverable oil in excess of 250 million barrels. Production is expected to start in 2003 and when the field is fully developed, it is estimated that production could rise to 100,0000 barrels per day by 2004. (alex)