Exxon Mobil Cepu Limited (EMCL) continues to strive to optimize Cepu Block oil production in the future. On the other hand, the Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) projects that Cepu Block production will naturally start to decline in 2022 if there is no effort whatsoever.
Vice President of Public and Government Affairs ExxonMobil Indonesia Azi N Alam said, referring to the Banyu Urip block's plan of development / POD, the peak production period of around 165 thousand barrels per day (BPD) is estimated to last about two years.
However, his party has reached production of up to 225 thousand BPD in about five years. This means that the Cepu Block has reached 30% higher production and is three years longer than the original plan. However, like the natural characteristics of reservoirs around the world, he did not deny that Banyu Urip Field production would decline.
"But Exxon Mobil continues to explore options to optimize the production of the Cepu Block safely and reliably, together with SKK Migas and our partners," said Azi.
Azi explained that Banyu Urip is a world-class productive resource. Based on the results of a technical study, Banyu Urip's recoverable reserve has more than doubled from the initial POD of 450 million barrels of oil to 940 million barrels. By early 2021, Banyu Urip has exceeded its original POD commitment by producing more than 450 million barrels since January 2016.
“This achievement is a testament to ExxonMobil's world-class project design and management, safe operation, and prudent reservoir management. As the backbone of national oil production, we expect to produce more than double our initial expectations. This is certainly very beneficial for all stakeholders, "he explained.
Head of SKK Migas Dwi Soetjipto said this year Cepu Block production is targeted to reach 219.86 thousand BPD for oil and 55.16 million standard cubic feet per day / MMscfd for gas. The amount of oil production is equivalent to 30% of the national oil production this year. The production of the Cepu Block will gradually decrease starting in 2022.
"So we focus on how to maintain the natural decline in the Cepu and Mahakam blocks. In the Cepu Block, the amount of gas is starting to increase, ”he said.
Several strategies are being prepared to hold the Cepu Block production, namely good reservoir management, monetization of untreated gas, optimization of field development and drilling, and development of clastic formations.
"Apart from that, the development of surrounding fields, such as Cendana and Alas Tua," said Dwi.
Previously, in December 2019, Exxon Mobil operated the Kedung Keris Field which supported the production of the Cepu Block. The field can produce up to 10 thousand BPD of oil, while the reserves reach 20 million barrels of oil.
Investor Daily, Page-10, Monday, Feb 8, 2021
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