ExxonMobil starts exploration works in East Java

ExxonMobil Cepu Limited (Ltd) has started exploration activities at its oil concession in Banyuurip, about some 10 kilometers from Bojonegoro and Jimbaran Tuban, Republika daily reported on Thursday.

The deputy manager of the company, Thor Sutansin said the investment needed until production activities, which were expected to begin in early 2003 would reach about US$ 1.2 billion.

?The exploration activities were made as the follow-up of the finding of oil reserves of about 120 million barrels in Tuban in 1994,? he told reporters after a meeting with East Java Governor Imam Oetomo.

State-owned oil and gas company Pertamina?s director for upstream activities Iin Arifin Takhyan said ExxonMobil was expected to begin production activities during the first quarter of 2003.

According to him, the current seismic survey activities, which would be completed in three months, would be continued with the construction of drilling and production facilities.

?Construction activities will peak in 2002, and will gradually decline in 2003 when production activities will be started,? he said, adding that about 2,500 workers were involved in the ongoing exploration activities.

Sutantin said that Exxon was expected to be able to produce as much as 25,000 barrels per day during the first quarter of 2003, and about 100,000 barrels per day in 2004.(*)