Pertamina approves plan of development for ExxonMobil?s Cepu oilfield

State oil and gas firm Pertamina said on Thursday that it had already approved the Plan of Development (POD) for ExxonMobil?s oilfield in Cepu technical assistance contract (TAC) in East Java despite unsettled negotiation over participating interest in the huge oilfield between ExxonMobil and Pertamina.

Iin Arifin Takhyan, Pertamina?s upstream director told Petromindo.com in an interview that for Banyu Urip oilfield development would drill 64 development wells, and the POD would require investment of up to US$ 1 billion.

Iin also said Pertamina had also approved ExxonMobil?s plan to employ secondary lifting method.

Crude production is expected to commence in 2003 and with the employment of secondary lifting method, peak production would reach 150,000 barrels per day, said Iin

Pertamina and ExxonMobil had been in talks over the former?s participation in Cepu TAC oilfield where ExxonMobil discovered at least 250 million barrels of oil reserve.

Pertamina insisted on acquiring 35 percent working interest in Cepu while ExxonMobil was offering 15 percent. (*)