East Java's Banyu Urip Oil Field Resumes Production After Labor Unrest

Normal production resumed at Banyu Urip oil field in the Cepu block, East Java, Indonesia following a disruption caused by labor unrest Saturday, an official of the country's upstream oil and regulator said, as reported by local newspaper The Jakarta Post Wednesday.

Banyu Urip production dipped to a low of 30 barrels of oil per day (bopd) from the usual 80,000 bopd during the workers' unrest, which led to a suspension of construction at the main site of the development, where several production facilities are currently under construction.

“The production has returned to its normal level following the restart of production from the well-pad B and EOE (early oil expansion) facility. Activities in EPC (engineering, procurement, construction) 5 have also been resumed but activities in EPC 1 are still on hold,” Upstream Oil and Gas Regulatory Special Task Force (SKKMigas) spokesperson Elan Biantoro said, as quoted in The Jakarta Post.

Operations at the field were disrupted after Banyu Urip’s subcontract workers -- employed by the EPC 1 contractor Tripatra-Samsung -- became angry when they were not allowed to leave the worksite for their lunch break, with the incident resulting in the damage of properties, including vehicles and offices.

Work at the EPC 1 and 5 sites was stopped, while production from facilities near the incident was temporarily halted, ExxonMobil Indonesia Vice President for Public and Government Affairs Erwin Maryoto told The Jakarta Post, adding that activities at EPC 5 recommenced Monday and “EPC 1 planning and repairs to the damaged offices are ongoing ... workers will restart following completion of the investigation.”

The full development of Banyu Urip comprises five projects: the development of central processing facilities (EPC 1), an onshore pipeline (EPC 2), an offshore pipeline and mooring tower (EPC 3), a floating storage and off-take vessel (EPC 3), and supporting infrastructure (EPC 5). Construction work remains only for EPC 1 and 5, with Banyu Urip currently producing oil from its early production facility (EPF) and EOE facilities.

The central processing facility (CPF) for the Banyu Urip project will be equipped to have a total production of 165,000 bopd, rising to a peak production of 205,000 bopd when combined with the EPF.


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