Pertamina appoints contractor to build pipeline, storage in Cepu block

PT Pertamina EP Cepu, the subsidiary of state-owned oil and gas company Pertamina, has awarded Singaporean firm Geolink Nusantara Pte Ltd the contract to construct pipelines and a crude oil receiving storage in the Cepu block.

"We hope the works can be commenced in April," the president of Pertamina EP Cepu, Hestu Bagyo said on Friday.

Geolink is given until November this year to finish the construction of the pipelines that will stretch 40 kilometers from Banyu Urip field to Mudi.

Geolink has also been appointed to build a crude oil receiving storage with capacity of 100,000 barrel.

The Cepu block is jointly operated by Pertamina and Mobil Cepu Ltd, a subsidiary of U.S. oil and gas giant ExxonMobil with 45 percent interest each, while local governments hold the remaining 10 percent. It is expected to start early production in 2009 with 10,000 BPD. Peak production of 165,000 BPD would be achieved in 2-3 years after first production. (godang)