ExxonMobil seeks to optimize Cepu block oil

production
Friday, February 5 2021 - 08:58AM WIB

ExxonMobil Cepu Ltd, operator of the Cepu block in East Java, said it will continue
efforts to optimize oil production at the block despite being overshadowed by natural
production declining rate potential.
Vice President of Public and Government Affairs of ExxonMobil Indonesia Azi N. Alam
was quoted by news portal kontan.co.id as saying that the Banyu Urip field in Cepu block
is considered as world-class producing upstream asset.
He said that based on technical assessment, the recoverable reserves are twice the initial
estimate stated in the plan of development (POD).  “Double the initial POD of 450 mmbo
to 940 mmbo.  At the start of this year, the Banyu Urip field has exceeded the initial POD
commitment by having produced more than 450 mmbo since the start-up in January
2016,” he said. 
In addition, referring to the Banyu Urip initial POD, production for the two-year period
was estimated at 165 thousand barrels per day (bpd). But in reality, Banyu Urip has been
able to reach peak production of up to 225 thousand bpd in five years.  "In other words,
the production rate has increased by 30 percent from the initial POD (target), and the
peak production is three years longer than originally estimated," said Azi.
Read also: Cepu block begins production decline phase
Azi explained, despite reaching peak production, Banyu Urip Field production is
expected to decline. According to him, this is due to the natural characteristics of the
reservoir.
Although it is projected to decline, Azi emphasized that efforts to optimize production
will continue. In addition, it is also committed to maintaining cost-effective safety and
reliability performance.
Upstream oil and gas authority SKK Migas Chairman Dwi Soetjipto said earlier that
production of Banyu Urip field, the largest oil producing asset in the country, is expected
to start to decline this year.  He said that Banyu Urip field oil output in 2022 is projected
to decline to below 200,000 bpd, and to further tumble to 100,000 bpd by 2030.
SKK Migas Deputy of Operations Julius Wiratno said that production at Banyu Urip field
is expected to decline by 3-4 percent in 2021.
 ExxonMobil owns a 45 percent interest in the Cepu block as the operator. PT Pertamina
E&P Cepu (PEPC), a subsidiary of state-owned oil and gas PT Pertamina, holds another
45 percent interest in the block, while the remaining 10 percent is held by minority local
government-owned companies.
Editing by Reiner Simanjuntak