Named Banyu Urip because the water contains bubbles. Banyu Urip means living water because the water is bubbling, ”said ExxonMobil Cepu Limited (EMCL) Field Public and Government Affairs Manager Rexy Mawardijaya during a visit to Banyu Urip Field, Cepu Block in Bojonegoro. Banyu Urip is actually a small sub-district in Bojonegoro Regency, East Java Province which later became the name of one of the oil fields which in 2017 will produce 200,000 barrels per day (BPD).
Banyu Urip Field
The oil production target for next year comes from 45 wells which are divided into three groups, namely Well Pad A, B, and C as well as a central processing facility / CPF covering an area of 800 hectares. Through efforts to increase production to the maximum, the oil and gas fields contributed 24% of the ready-to-sell production target or national oil lifting in 2017 of 815,000 BPD.
To reach the Banyu Urip field location, it is necessary to travel 110 kilometers west of Surabaya. By using the train from Pasar Turi Station to Bojonegoro Station, you will be presented with a view of a stretch of rice fields on the right and left. Likewise, on the trip from Bojonegoro Station to Gayam District, which still shows the activities of farmers in the fields.
The fertile soil there is not only rich in humus but also has a layer of oil under it. Since the discovery of around 450 million barrels of oil reserves in 2005, the region has not only produced agribusiness-based products, but also crude oil.
Behind the expanse of rice fields, a tall tower can be seen with flames burning from oil production activities in the Banyu Urip field, Cepu Block. The Banyu Urip field started producing its first oil in 2009 with a volume of 20,000 BPD and could fully produce up to 165,000 BPD this year.
In fact, next year, oil production from the oil field will be increased to 200,000 BPD. Although production only increased by 15,000 BPD from the current production position of 185,000 BPD, upstream oil and gas business activities face a classic problem, namely rejection from local residents.
It is not an easy matter to develop oil sources in the middle of settlements and rice fields. In 2015, several facilities in the vicinity of the operation site were damaged because local residents feared that increased activity towards peak production would disrupt their homes and fields.
Blogger Agus Purnomo in SKK Migas
In fact, in August 2016, the local subcontractor closed the road access for vehicles to the Banyu Urip field due to differences in work schedules. Rexy said, his party coordinates with the Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) and related parties to reduce risks from social, economic, and environmental aspects as a result of the planned increase in production.
"EMCL is coordinating with SKK Migas and related parties for plans to increase production including mitigating social, economic, and environmental aspects," he said.
If the maximum production of 200,000 BPD is reached, Bojonegoro Regency will become the region with the largest revenue sharing fund (DBH) after Riau Province because it is the location with the second highest oil production in Indonesia.
Regent of Bojonegoro Suyoto said that the preparation for additional production was not facing problems from both technical and social aspects. Previously, he said the rejection from local residents was due to the smell of gas which caused several people to fall unconscious after inhaling the gas.
The emergence of this gas is an indicator of technical aspects unpreparedness. He admitted it needs continuous efforts to foster good communication with residents. Moreover, there are around 18,000 residents, the majority of whom work as farmers from seven villages located close to the Banyu Urip field. For example, he cited humanist approaches such as increasing job opportunities and better livelihoods with the project.
"There is no problem whatsoever technically, from a social point of view it doesn't exist either," he said.
Meanwhile, from the budget aspect, his party has also prepared if the additional production does not meet the target set. In 2017, it is estimated that the allocation of oil and gas revenue sharing (DBH) received by Bojonegoro Regency is IDR 900 billion. Learning from DBH in 2016, the realization and target of oil production from Banyu Urip were not appropriate because peak production shifted backward from the original plan at the end of 2015 to the beginning of this year.
In addition, the DBH revenue was also affected by the decline in oil prices. As a result, from the Rp 1.1 trillion budget, the realization of the DBH was only around Rp 700 billion. His party has also prepared what activities should be postponed if the targeted revenue is smaller.
"This year, from Rp 1.1 trillion, only Rp 700 billion has been realized. Don't just look at the plan, we must have the elasticity of the budget.
Vice President of Public and Government Affairs ExxonMobil Indonesia Erwin Maryoto said that his party is focused on efforts to encourage additional Banyu Urip production.
According to him, EMCL can increase current production with existing facilities, but from the aspect of the Environmental Impact Analysis (EIA/Amdal), it does not allow production to exceed the 185,000 BPD point because it is feared that it will have a higher environmental impact.
Currently, the revision of the Environmental Impact Analysis is still in process at the Ministry of Forestry and the Environment. The Amdal revision is expected to be approved by the end of December 2016 so that the process of adding production will begin in early 2017. According to him, there is no need for new facilities and investments to boost production.
As is known, the addition of Banyu Urip production previously did not receive the blessing of SKK Migas in the 2016 revised work program and budget / WP & B program because it considered the reasons for the sustainability of the peak production. Production of 165,000 BPD is considered to be more secure than 205,000 BPD. In terms of economies of scale, with peak production of 165,000 BPD, the government will receive a present value of US $ 82 million higher than the peak production scenario of 205,000 BPD.
In addition, additional production requires additional costs, revision of Amdal, and the loss of the EPCL contractor's guarantee for the production facility if the crude oil is producing more than 185,000 BPD. However, to increase the production only increased operating costs by the US $ 2 million. According to Erwin, SKK Migas' records are of concern. However, the main concern so that it can be resolved immediately is Amdal approval.
Meanwhile, to get around the addition of products, his party will increase the frequency of shipments and will not build a new pipeline that flows oil to the delivery point in the floating storage and offloading facility / FSO of the Gagak Rimang Tanker Ship.
ExxonMobil Cepu Limited (EMCL) as the operator owns 45% of the Banyu Urip field, PT Pertamina EP Cepu (PEPC) 45%, and four Regional Owned Enterprises, namely PT Blora Patragas Hulu 2.18%, PT Petrogas Jatim Utama Cendana 2.24%, PT Asri Dana Sejahtera 4.48%, and PT Sarana Patra Hulu Cepu owns 1.09%.
Vice President of Integrated Supply Chain of PT Pertamina Daniel Purba said that his company will accommodate the production of the domestic portion of the oil from the Banyu Urip Field. Even though in mid-2016, the company had exported Banyu Urip crude oil due to oversupply and was testing crude oil, he said that this time the oil supply would be purchased by all refineries except for the Kasim Refinery, Papua.
"Now all refineries, except the Kasim Refinery can process Banyu Urip oil," he said.
Bisnis Indonesia, Page-30, Tuesday, Dec 13,2016
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