ExxonMobil awards first engineering contract for Indonesia oilfield development
ExxonMobil said Friday that its development of the Indonesian Banyu Urip field in the Cepu block in East Java had achieved a milestone, with the company awarding the first of five engineering, procurement and construction contracts for work on major facilities.
ExxonMobil’s Mobil Cepu Ltd. (MCL) is operator of the Cepu block with 45% interest. The other co-venturers are Pertamina with 45% interest and four local government companies holding the remaining 10% interest.
“This is a major milestone in the development of the Banyu Urip field,” said Neil Duffin, president of ExxonMobil Development Co.
“Based on appraisal drilling, we’ve increased estimates of the recoverable resource under full development to 450 million bbl. This multibillion dollar project continues to benefit from the strengths of both Pertamina and ExxonMobil and provides the foundation for a strong partnership between the two companies, as well as with the local government companies.”
Full field development is planned to produce 165,000 bpd of oil from facilities that include 49 wells on three well pads, a central processing facility, and a 60 mile (95 kilometer) pipeline to transfer the processed oil to a 1.7 million bbl floating storage and offloading (FSO) unit in the Java Sea.
Tankers will load crude oil from the FSO for transport to domestic and world markets.
Construction is targeted to be completed in 36 months and the start-up of full field production is expected afterwards, pending regulatory approvals.
Early oil production on the Banyu Urip development commenced in 2009 from facilities with demonstrated capacity of greater than 20,000 bpd.
Duffin said: “The excellent performance of the early production wells and facilities adds economic value to the overall project and is supportive of the Government of Indonesia's priorities to safely and effectively develop the Cepu Block oil and gas resources.”
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