ExxonMobil Cepu Ltd (EMCL) is actively working to monetize gas by-products from the Banyu Urip Field within the Cepu Block as a strategic move to counter the recent decline in oil production, which currently stands at 140,000 barrels of oil per day (bopd).
According to Wahju Wibowo, Deputy Exploitation at SKK Migas, EMCL is in the process of constructing advanced gas processing facilities expected to produce around 10 million standard cubic feet per day (MMscfd) of gas.
Applying cutting-edge technology
The establishment of these cutting-edge facilities is anticipated to significantly boost overall storage capacity, particularly for gas co-produced during oil transportation.
By enhancing the infrastructure, EMCL aims to potentially reverse the current trend of declining oil production from the Cepu Block.
The operationalization of the new gas production facilities is tentatively set for 2027, with Pertagas secured as the designated buyer for surplus gas through successful ongoing negotiations.
In a noteworthy development, SKK Migas has reported that PT Pertamina Hulu Rokan (PHR), managing the Rokan Block, has surpassed EMCL in oil production by the end of 2023. PHR has maintained oil production at an impressive 167,000 bopd, effectively mitigating any downward trend.
In contrast, EMCL, which led in oil production during the first half of 2023, has observed a significant decrease to 140,000 bopd.
Optimization project faces challenges
The Optimization Project for the Banyu Urip Field’s development, led by Carole Gall, President of ExxonMobil Indonesia, presents formidable challenges.
Carole highlighted the intricacies of the upcoming drilling program for EMCL in 2024, involving the drilling of five infill carbonate wells and two clastic wells.
Drilling activities are scheduled to commence in February 2024, with a projected first oil output of approximately 10,000 bopd by the end of the following year.
According to the Ministry of Energy and Mineral Resources, the cumulative investment commitment for the Optimization Development of the Banyu Urip Field in the Cepu Block is USD 203.5 million, equivalent to IDR 3.08 trillion (based on an assumed exchange rate of IDR 15,180 per US dollar).
This sustained investment in ongoing drilling activities is poised to significantly increase EMCL’s additional oil reserves, potentially reaching 42.92 million barrels of oil (MMBO).
