EXXON READY TO PRODUCE 25,000 BPD FROM CEPU

Jakarta Forum - Jakarta, Jan 27, Mobil Cepu Ltd. (MCL), the subsidiary of ExxonMobil Oil Indonesia, is ready to produce 25,000 barrels of oil per day from its field in Banyuurip in Cepu Block, East Java, spokesman said.

ExxonMobil Oil Indonesia Vice President for Public Relatios and General Affairs Maman Budiman said in a meeting with House Commission VII here on Wednesday that the production rate was determined upon its buyers.

"We are ready to produce up to 25,000 barrels a day," he said.

He said the production was higher than the government`s target of 20,000 barrels a day.

He said however that BP Migas (downstream oil and gas regulatory agency) had set the target at only 16,000 barrels a day for 2010.

On Wednesday production at Cepu was recorded at 18,000 barrels a day and 13,000 of them were sent to Pertamina daily and the rest to PT Tri Wahana Universal.

If the 20,000 scenario was reached it would sell 14,000 of them to Pertamina and 6,000 to PT Tri Wahana Universal.

The production at Cepu came from five wells consisting of four production and one water injection wells.

The production facility at Banyuurip started operating in August 2009 and had conducted test production of 20,000 barrels in October 2009.

Maman said until now Cepu Block has produced 1.5 million barrels a day.

In February 2010, Exxon plans to drill a well in the Alas Tua Barat field, Kedung Keris and Alas Tua Timur.

He said the company would also start a gas injection facility in February 2010.

In 2010 Exxon will also help PT Tri Wahana Universal build a refinery and a reliable receiving facility and seek other buyers.

Regarding the company`s plan to produce 165,000 barrels a day Maman said the final version of the front end engineering design had been completed and bidding for the engineering, procurement and production was ready to be carried out.

He said the company was currently just conducting the first stage of the engineering, procurement and production auction.

"Normally it will take a year before the winning bidder is determined so that next year construction could be started," he said.

The second stage of the engineering, procurement and production auction to the fifth stage will be done after BP Migas gives an approval.

"If construction will take 33 months by the end of 2013 the project will be finished," he said.

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Posted in: Alas Tua Timur,Banyuurip in Cepu Block,CEPU,downstream oil,East Java,gas regulatory agency,Kedung Keris,Mobil Cepu Ltd.,PT Tri Wahana Universal