First Cepu EPC contract worth US$746.3m signed
Friday, August 5 2011 - 08:02 AM WIB
Tripatra will develop the facilities in collaboration with its South Korean consortium partner Samsung Engineering.
The award was marked by signing of the EPC contract in Jakarta today. The EPC contract was signed by President Director of Tripatra Engineers & Construction, Albert Steven Budisusetija, President Director of Samsung Engineering Co. Ltd, Ki-Seok Park and President of Mobil Cepu Ltd, Terry Mcphail. The signing was witnessed by BPMigas head, R Priyono.
Priyono said the contract was the first and the largest of the five EPC contracts, with a combined value of US$ 1.3 billion. He said the remaining four EPC contracts will be awarded by the end of 2011.
Priyono said the construction of the Banyu Urip facilities are expected to be completed in 36 months, therefore the peak production target of 165,000 barrels of oil per day would be reached immediately afterward.
Full-field development is planned to produce 165,000 barrels of oil per day from facilities that include 49 wells on three well pads, a central processing facility, and a 95-kilometer long pipeline to transfer the processed oil to a 1.7 million barrel floating storage and offloading (FSO) unit.
Tankers will load crude oil from the FSO for transport to domestic and world markets. The project plans to recover approximately 450 million barrels of oil.
The development and future production of Banyu Urip will generate significant benefits for Indonesia. The drilling, construction, and installation of the facilities will be accomplished with the support of national suppliers, including a number of local companies.
Several thousand Indonesians will be employed by Mobil Cepu Ltd. and its contractors during the approximately three-year development phase of the project.
?Banyu Urip project will lift national oil production,? said Priyono.
The Banyu Urip co-venturers initiated production in late 2008 and commissioned an early production facility in August 2009. The facility has demonstrated capacity of 20,000 barrels per day and has been operating reliably, with daily sales dependent on buyers? demand.
Mobil Cepu Ltd., is the operator of the Cepu Block. Mobil Cepu Ltd., and Ampolex (Cepu) Pte. Ltd, both subsidiaries of Exxon Mobil Corporation, hold 45% interest in the block, Pertamina EP Cepu holds 45% and the Cepu Block Cooperation Body (BKS) the remaining 10%. (godang/bernard/josef)