Cepu Block production managed by Exxon Mobil Cepu Limited (EMCL) has reached 475 million barrels, exceeding the target in the plan of development/POD of 450 million barrels. The government encourages the development of oil and gas potential in this block so that production does not decrease significantly.
The achievement of cumulative production of 475 million barrels is marked by the 700th shipment of oil lifting from the Cepu Block at the floating storage and offloading/FSO tanker ship Gagak Rimang. The volume of oil lifted is 1 million barrels, namely 850 thousand barrels belonging to the government and 150 thousand belonging to the Cepu Block Participating Interest Cooperation Agency (BKS PI). The shipment was led and witnessed directly by the Minister of Energy and Mineral Resources (ESDM) Arifin Tasrif.
Arifin said that Exxon Mobil Cepu Limited (EMCL) had previously succeeded in increasing the Cepu Block reserves from the initial 450 million barrels to 940 thousand million barrels. Even from the production level, the oil and gas company originating from the United States was also able to reach more than 200 thousand barrels per day (BPD) from the initial around 160 thousand BPD in 2016. He hopes that Exxon Mobil Cepu Limited (EMCL) can maintain its performance.
"We hope that this capability can continue to be developed to optimize oil and gas production in Indonesia," said Arifin Tasrif. One of them, Exxon Mobil Cepu Limited (EMCL), and partners are expected to continue to develop the oil and gas potentials around the Cepu Block area.
"We hope that the existing potentials can be developed immediately so that they can be used as reserves so that the production process can then be carried out," he said.
Head of the Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) Dwi Soetjipto added that the Cepu Block had reached a plateau production level with a volume of more than 220 thousand BPD for five years. This realization far exceeds POD with an estimated average production of 165 thousand BPD over two years.
However, as is normal for other oil and gas reservoirs, the Cepu Block production is now starting to decline. However, his party together with Exxon Mobil Cepu Limited (EMCL) continues to strive to maintain Cepu Block's oil production so that it does not drop drastically.
"Currently SKK Migas continues to oversee Exxon Mobil Cepu Limited (EMCL) with Cepu Block partners to discuss various initiatives to manage the production decline that has begun to occur, including exploring new opportunities in the Cepu Block," said Dwi.
According to him, there are additional reserves that are ready to be produced of up to 40 million barrels. "In the near term the potential that can be monetized is 40 million barrels, but infill drilling must first be carried out," he said.
In addition, there is an opportunity to increase the production of the Kedung Keris Field from 10 thousand BPD to 11 thousand BPD. However, exploration drilling is needed to ensure the potential in Kedung Keris. Not only oil, but his party also encourages the monetization of gas potential in the Cepu Block area.
This is because the potential for gas reserves in the Cendana and Alas Tua fields is recorded to be very large, around 200 billion cubic feet/BCF with an estimated production of 83 million standard cubic feet per day/MMscfd. Then there is gas potential from several field structures in the Cepu Block, such as Giyanti and Pilang, the amount of which can reach 500 BCF.
“Gas potential in the future. We hope that Mobil Cepu Limited (EMCL) and Pertamina can optimize this opportunity," he said.
ExxonMobil Indonesia President Irtiza Sayyed said that discussions on opportunities to monetize the potential that still existed in the Cepu block had been carried out intensively. One of the discussions is to ensure the potential reserves of 40 million barrels of oil that are ready to be produced.
"We will do whatever it takes to maximize production and curb production declines," he said.
As a partner, President Director of PT Pertamina (Persero) Nicke Widyawati stated that she would fully support efforts to keep Cepu Block production stable.
"We hope that in the future, the good and solid cooperation that has been carried out so far can be maintained and even increased, given the production level which is estimated to be stable at the level of 200 thousand BPD, so that it can support national energy security," She said.
Referring to SKK Migas data, this year, the Cepu Block is targeted to produce 219 thousand BPD of oil. Meanwhile, the realization of production as of March 31, was still at 213,251 BPD or 97.4% of the target.
In 2020, the realization of Cepu Block production was recorded at 218,194 BPD. Oil production activities at the Banyu Urip Field, Cepu Block have been carried out since 2008 and the main production facilities began operating in the fourth quarter of 2015.
Investor Daily, Page-10, Thursday, June 10, 2021
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