ExxonMobil Cepu Ltd (EMCL) has commenced the optimization program for the Banyu Urip field development in the Cepu Block, Bojonegoro, East Java, drilling the infill carbonate well on Friday, March 1, 2024.

The infill carbonate well drilling is part of the drilling campaign in the Cepu Block conducted by ExxonMobil from 2024 to 2026, consisting of 5 infill carbonate wells and 2 clastic wells.

Minister of Energy and Mineral Resources (ESDM) Arifin Tasrif appreciated EMCL for its ability to maintain production in the Cepu Block optimally. Initially, the potential of the field was 400 million barrels, but to date, it has produced 630 million barrels and has the potential to reach 1 billion barrels.

Currently, production in the Cepu Block is starting to decline. Therefore, Arifin, along with related stakeholders, is pushing to maintain production at Banyu Urip.

"Currently, there are plans for seven drills. Compared to eight years ago, there were no drills at all. Hopefully, the clastic field has the same potential as the carbonate field, which has the potential of up to 1 billion barrels," Arifin said.

Arifin hopes that the infill and clastic well drilling activities will add 20,000 to 30,000 barrels of oil per day to help mitigate the decline in production. Moreover, in the future, it is hoped that the clastic field will produce the same amount as the carbonate field.

"We are proud to continue our collaboration with Exxon, as the world's largest oil company with extensive experience and technology. We continue to collaborate with Exxon, including on carbon capture cooperation and other investment plans in Indonesia. We hope for maximum output from the Cepu field," Arifin said.

On the other hand, Head of the Upstream Oil and Gas Regulatory Task Force (SKK Migas) Dwi Soetjipto said SKK Migas is paying great attention to efforts to maintain oil field production at Banyu Urip optimally. He added that the Banyu Urip Field production has exceeded the target set in the plan of development (POD), thanks to various efforts and breakthroughs made by SKK Migas and ExxonMobil in maintaining the performance of the Banyu Urip Field.

"The infill carbonate well drilling at the Banyu Urip Field is a continuation of the efforts made by SKK Migas and ExxonMobil as operators to increase oil production by 42 million barrels while still considering the capacity and support of the existing reservoir," Dwi said.

He said that the visit to Banyu Urip was not only about reviewing the infill carbonate well drilling but was also to demonstrate the concern and hope of ESDM and SKK Migas to encourage increasingly optimal operational performance at the Banyu Urip Field.

"As a field with oil production of around 25 percent of national oil production, Banyu Urip is highly expected to contribute to achieving future production increase targets, namely 1 million barrels of oil per day in 2030 to support national energy resilience," said Dwi.

Carole Gall, President of ExxonMobil Indonesia, said that the Banyu Urip Infill and Clastic project, or commonly referred to as the BUIC Project, holds great significance.

"This project will contribute significantly to the aspirations we fully support, namely achieving the national production target of 1 million barrels of oil per day by early 2030, which also strengthens national energy security," she said.

According to the plan, the drilling of 2 infill carbonate wells scheduled for 2024 is projected to start onstream this year by tying in with existing facilities. Subsequently, followed by the drilling of 3 infill carbonate wells and 2 clastic wells over the period until 2025, and it is expected to be onstream by 2026.

The Banyu Urip drilling campaign activities use rigs and equipment entirely made in Indonesia and operated by PT Pertamina Drilling Services Indonesia (PDSI), a subsidiary of PT Pertamina. This drilling demonstrates PDSI's competence in oil and gas drilling and the upstream oil and gas industry's support for the growth of national companies, as well as the commitment of SKK Migas and KKKS (contractor) in implementing local content requirements in the upstream oil and gas industry.