ExxonMobil to construct oil pipeline

ExxonMobil, which will explore the Bojonegoro oil field, will not develop refinery facility in the Banyu Urip field area. What ExxonMobil will do is construct a 76 km pipeline connecting Bojonegoro with a seaport in Tuban, East Java, Koran Tempo reported Saturday.

?We stress here that we?ll not develop oil refinery in Bojonegoro, we?ll develop an oil pipeline from Bojonegoro until Tuban,? said company spokesperson Deva Rachman.

The Bojonegoro regency administration had earlier proposed to the central government for the construction of an oil refinery in the area, claiming that it was in line with the plan of development of Banyu Urip.

According to Deva, once the pipeline had been set up, it will transport oil from the Banyu Urip area directly to the Tuban Port, from which the oil would be transported by ships to designated destination.

The Cepu oil block has estimated oil reserves of about 600 million barrels, mostly located in Banyu Urip, Kemuning, Jambaran, Alas Tua, and Cendana fields. The Banyu Urip field has the largest oil deposit which is estimated to reach 350 million barrels.

Pertamina and ExxonMobil each holds a 45 percent stake in the project, with local governments in the two provinces controlling the remainder. (*)