Gulf Oil and Gas accountACCOUNT

Work on Banyu Urip Development is 87% Complete

Source: 4/28/2014, Location: Asia

Bojonegoro, The oil and gas development project of Banyu Urip, Cepu Block located in Bojonegoro, East Java, has reached 87 percent until the third week of April 2014. With the existence of early production facility operated since August 2009 until now, this Banyu Urip project has cumulatively produced 36 million barrels of oil or equal to US$ 3.47 billion.

According to Acting Chairman of the Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas), J. Widjonarko, the production of Banyu Urip Field will be increasing in stages. Currently, the field production operated by Mobil Cepu Ltd. (MCL) is 29,000 barrels of oil per day. As per September 2014, the production is targeted to increase by 10,000 barrels of oil per day in line with the addition of early production facility.

“The increase in stages will be made until achieving the peak of production of 165,000 barrels per day in 2015,” Widjonarko stated when delivering presentation before the Vice President RI, Boediono at the Office of Mobil Cepu Ltd in Bojonegoro, Thursday (24/4). The event was also attended by Head of the Presidential Work Unit on Monitoring and Controlling Development, Kuntoro Mangkusubroto, Vice Minister of Energy and Mineral Resources, Susilo Siswo Utomo, Regional Secretary of East Java Province, Akhmad Sukardi, and President MCL, Jon M. Gibbs.

Pursuant to the plan of development (PoD), the investment in Banyu Urip Project is US$ 2,525 billion consisting of investment for the construction of production facilities in the amount of US$ 2,188 billion and for the well drilling in the amount of US$ 337 million. The construction of facilities is divided into five EPC (engineering, procurement, and construction) contracts: Central Production Facility (CPF), 72 km onshore pipe, offshore pipe and mooring tower, Floating Storage Off-loading (FSO), and infrastructure facilities. Widjonarko said that the construction is running well with various progresses in all aspects of EPC contracts. “The most proud is that the Indonesia company took lead the consortium of those five EPC contracts,” Widjonarko stated.

Meanwhile, the drilling was carried out to 49 wells consisting of 33 oil production wells and 16 injection wells. “The drilling activities took place faster than the schedule,” Widjonarko said.

Widjonarko affirmed that this project is important and strategic for the state defense in energy sector. If this project runs as planned, Banyu Urip Field may generate contribution of oil production for almost 20 percent of national oil production. “This percentage is a very significant indication for the achievement of oil production target and the increase of state revenue,” Widjonarko said.

Jon M. Gibbs added that MCL first priority is to complete the project safely and reliably. He is committed to achieve a completed work in the performance of each EPC and drilling activities as targeted for the peak production in 2015. MCL also supported SKK Migas’s steps to increase the local content. It is not only five EPC contracts led by an Indonesia company, there are 450 national and local sub-contractor companies being involved, and 85 percent thereof are local companies from Bojonegoro and Tuban. Additionally, there are 9,100 Indonesian employees whose 60 percent thereof are local personnel originated from Bojonegoro and Tuban. ”The Banyu Urip Field is a world class oil project built by the Indonesian nation,” Jon said.

As the information, oil and gas reserves in Banyu Urip Field of Cepu Block were discovered in 2001. The Cooperation Contract of Cepu Block was signed on 17 September 2005 with MCL as the operator. MCL is a subsidiary of Exxon Mobil Corporation holding 45 percent of participating interest, jointly with Pertamina EP Cepu under 45 percent of interest and Badan Kerja Sama Blok Cepu (BKS) under 10 percent of interest. The plan of development was approved by the Minister of Energy and Mineral Resources on 15 July 2006. The oil reserves in Banyu Urip Field are expected to contain 445 million barrels. (ACU)

Development News in Indonesia >>

United Kingdom >>  6/1/2020 - Independent Oil and Gas plc (IOG), (IOG.L), as operator of its joint venture with CalEnergy Resources (UK) Ltd, is pleased to announce that it has awa...
Russia >>  5/19/2020 - Gazprom Neft subsidiary Gapzromneft-Zapolyarye is set to begin developing Neocomian-Jurassic deposits at the Bovanenkovskoye oil and gas condensate fi...

Norway >>  5/18/2020 - Norway's Petroleum Safety Authority has given Repsol Norge (Repsol) consent to use the Maersk Inspirer mobile facility on the Yme field. ...
Papua-New Guinea >>  5/18/2020 - Twinza welcomes the announcement by the PNG Prime Minister, the Honourable James Marape, that the National Executive Council has endorsed the submissi...

Russia >>  5/13/2020 - Gazpromneft-Zapolyarye has commissioned its first “fishbone” well at an oil-rim deposit at the Chayandinskoye field in Yakutia. The initial flow rate ...
Mongolia >>  5/11/2020 - Petro Matad Limited, the AIM quoted Mongolian oil explorer, provides an update on cost saving measures and its application for an Exploitation Licence...

Related Categories: Camp Building  Cleaning Equipment, Services  Communication  Corrosion Products/Services  Development  Exploration  Food Supplies  General  Labor Services  Land & Leasing  Mine Clearance  Oil & Gas Companies  Production  Service Companies  Skilled Labors  Transportation, 4X4 Trucks  Unskilled Labors  Utility Systems  Waste Disposal  Water Supply Services  Welding Products/Services 

Related Articles: Camp Building  Cleaning Equipment, Services  Communication  Corrosion Products/Services  Development  Exploration  General  Labor Services  Land & Leasing  Mine Clearance  Oil & Gas Companies  Production  Service Companies  Skilled Labors  Transportation, 4X4 Trucks  Utility Systems  Water Supply Services  Welding Products/Services 

Indonesia Oil & Gas 1 >>  2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 |

More News

Related Links

Gulf Oil and Gas
Copyright © 2020 Universal Solutions All rights reserved. - Terms of Service - Privacy Policy.