Permit for Banyu Urip production facility to be issued soon
Thursday, August 16 2012 - 01:16 AM WIB
The Bojonegoro Regency administration in East Java has finally agreed to soon issue the necessary principal permit for the construction of seven production facilities at the fifth and final EPC project for the full development of the Banyu Urip field in Cepu Block.
This comes following a meeting Tuesday between Bojonegoro administration officials, local council members, and senior officials of the upstream authority BPMIGAS.
With certainty for the issuance of the construction permit, the entire necessary permits for the full development of the Banyu Urip field have finally been secured. ?After receiving explanation, the (Bojonegoro) Regent has finally realized the importance of the construction of the supporting facilities by ExxonMobil Indonesia in the Cepu Block,? BPMIGAS Spokesman Alfonsiyus Rinto Pudyantoro told Petromindo.com Wednesday.
The Banyu Urip development project is considered as a strategic project to help increase the country?s oil production. With estimated reserves of around 450 million barrels of oil, Banyu Urip is seen as the largest unexploited oil field.
Production at Banyu Urip, operated by Mobil Cepu Ltd., currently stands at about 20,000 bpd. It is expected to increase to 165,000 bpd when all the facilities for the full development of the field have been constructed.
Production facilities to be constructed at the Banyu Urip field include 49 oil wells linked to three rigs, a processing facility, a 95-km oil pipeline, a 1.7 million barrel-capacity floating storage and offloading (FSO) facility, and an oil tanker. Construction of these facilities is divided into five EPC projects worth a combined US$1.3 billion.
Editing by Reiner Simanjuntak