PT Pertamina EP Cepu (PEPC), a subsidiary of PT Pertamina (Persero) which has a 45% participation right in the Cepu Block, the border of Central Java and East Java, posted an increase in production, net oil to share of 64% until the third quarter of 2016 to 74 thousand barrels of oil per day (BOPD) compared to the third quarter of 2015 amounting to 45 thousand BOPD.
According to Adriansyah, President Director of PT Pertamina EP Cepu (PEPC), the increase in net to share of oil for PEPC was supported by the increase in production of the Cepu Block Banyu Urip Field which exceeded the target of 165 thousand barrels per day. Increased production is also supported by central production facilities / CPF and reservoirs that work very well.
"This production achievement exceeds our work plan this year, we were even asked to increase oil production to 200 thousand BOPD for the Cepu Block or around 78 thousand BOPD for PEPC," said Adriansyah.
The Banyu Urip Field in the Cepu Block has become one of the mainstays of the government and is pursuing a target of lifting oil production. In the 2016 State Budget, production from this block is targeted at only 161 thousand barrels per day, but the target is exceeded. The government projects that oil production from the Cepu Block will reach 200 thousand BOPD next year to support the achievement of the lifting target of 815 thousand BOPD.
Adriansyah hopes that PEPC will become part of PT Pertamina (Persero) 's big goals to become a world-class national energy company. Partnerships with world-class energy companies such as ExxonMobil Corp also show PEPC as a business entity that has a high reputation and professionalism.
"The development of the oil and gas field in the Cepu Block is expected to support efforts to maintain national energy security and lift Indonesia back into an internationally recognized oil and gas producer," he said.
Adriansyah also explained, in the future, the development carried out in the Cepu Block will no longer be on oil production but on gas. The development carried out includes the Jambaran-Tiung Biru Field which is targeted on stream in 2019. Moreover, PEPC is believed to be the operator of the Jambaran-Tiung Biru unit development gas field with a production design capacity of 330 million cubic feet per day (MMSCFD).
the Jambaran-Tiung Biru
Dirgo D Purbo, an analyst and lecturer in energy security at the National Resilience Institute (Lemhanas), appreciated the increase in oil production from the Banyu Urip Field in the Cepu Block. Moreover, the Banyu Urip field has been a mainstay for oil and gas production, not only for Pertamina but also for the nation.
"In the future, Banyu Urip is still a mainstay because Indonesia's largest oil reserves are currently there,"
According to Dirgo, the Cepu Block oil production target next year is realistic without having to neglect the aspects of existing governance. Plus it's likely that oil prices will also increase at the end of the year and continue in the 2017 quarter.
"To increase and maintain Banyu Urip Field production, of course, by implementing optimized reservoir management in accordance with the capacity of the layer/production zone," he said.
Komaidi Notonegoro, Director of the ReforMiner Institute, acknowledged that Cepu Block production is currently heading to peak production so that net to share with Pertamina has also increased. In addition, the increase in production is also supported by the infrastructure and production facilities of the Cepu Block which are more complete so that production can be increased to the level of 200 thousand BOPD.
According to Komaidi, the Cepu Block is currently the mainstay of lifting because of significant performance. On the other hand, he advised the government through SOEs and other oil and gas cooperation contract contractors to develop productive fields such as the Cepu Block.
"Exploration activities must be increased. Without significant new field findings, our oil and gas production will continue to decline. EOR (Enhanced Oil Recovery) - one that can help to slow down the pace of decline but the discovery of new reserves is the key, ".
Oil and gas reserves at the Banyu Urip Field in the Cepu Block were discovered in 2001. The Cepu Block cooperation contract was signed on September 17, 2005, with Exxon Mobil Cepu Limited (EMCL), a subsidiary of ExxonMobil Corp, as the operator. MCL holds a 45 percent participating stake, together with Pertamina EP Cepu (PEPC) who holds a 45 percent share, and the Cepu Block Cooperation Agency (BKS) with a 10 percent share.
The field development plan was approved by the Minister of Energy and Mineral Resources on July 15, 2006. Oil reserves in the Banyu Urip Field are estimated at 445 million barrels.
Investor Daily, Page-9, Tuesday, Oct 18, 2016.
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