Indonesia's upstream oil and gas regulator SKKMigas expects the Banyu Urip oil field in Cepu, East Java to commence full production early next year as development work nears completion, a senior executive said, as reported in local daily Jakarta Globe Friday.
Field development work at the Banyu Urip field is 92.5 percent complete as of mid-September, with the its early production facility (EPF) currently producing 30,000 barrels of oil per day (bopd), according to SKKMigas' director for operations Muliawan.
“We hope they go online by early 2015. The target is February,” Muliawan said.
The Banyu Urip project is 45 percent owned by field operator Mobil Cepu, a unit of US-based oil and gas firm ExxonMobil. Indonesian state-owned energy company Pertamina’s subsidiary Pertamina EP Cepu holds an equal stake in the field, while regional-owned enterprise Badan Kerja Sama Blok Cepu owns the remaining 10 percent.
Oil production at Banyu Urip, which contained an estimated 450 million barrels of oil reserves and will account for 20 percent of Indonesia’s oil production, willl rise gradually until it reached a peak of 165,000 barrels per day by mid-2015. Peak production at the field is expected to be maintained for three years, SKKMigas indicated.
“We aim to reach optimum production, but we don’t want to surpass that as it would have a negative impact on the reservoir’s sustainability,” Muliawan said.
Development cost of the Banyu Urip project, which was sanctioned by the Indonesian government in July 2006, is estimated to reach $2.5 billion, including $2.2 billion for construction of production facilities and $337 million for drilling activities.
Last month, the floating storage facility for the Banyu Urip development was named FSO Gagak Rimang at Sembawang Shipyward in Singapore after completing upgrading works. FSO Gagak Rimang is equipped to store more than 1.7 million barrels of crude oil processed from the central production facility in Bojonegoro, according to SKKMigas.
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