ExxonMobil Increases Oil Production at Banyu Urip Project
Bojonegoro, 14 December 2015 – ExxonMobil Cepu Limited, as Cepu Block PSC Contractor announced today that daily oil production at the Banyu Urip project in Bojonegoro, East Java, has increased to more than 130,000 barrels following the safe startup of the onshore central processing facility.
Banyu Urip consists of 45 wells producing from three well pads, an onshore central processing facility, a 95-kilometer onshore and offshore pipeline, and a floating storage and offloading vessel and tanker loading facilities in the Java Sea. With the central processing facility now online, production will continue to increase over the coming months.
Banyu Urip is expected to produce 450 million barrels of oil over the project’s lifetime. Once full field production levels are safely reached, the project will represent approximately 20 percent of Indonesia’s 2016 annual oil production target. ExxonMobil, partnering with PT. Pertamina EP Cepu (PEPC) and the Cepu Block Cooperation Body (BKS PI Blok Cepu), commenced production from Banyu Urip in late 2008, and output increased as additional facilities were brought online in 2014 and 2015.
“This project illustrates ExxonMobil’s project management expertise as well as the capabilities of local suppliers and businesses,” said Dan Wieczynski, project executive of ExxonMobil Cepu Limited.
“Banyu Urip is helping maximize the value of Indonesia’s energy resources and is creating significant and lasting benefits,” said Amien Sunaryadi, head of SKK Migas.
Banyu Urip has been successfully developed by five Indonesia-led contractor consortiums responsible for engineering, procurement and construction. Together they employed more than 17,000 Indonesian workers at peak levels, representing 95 percent of the project’s overall workforce, and utilized more than 460 Indonesia subcontractors.
“We appreciate the ongoing support of the government of Indonesia, SKK Migas, our Cepu Block partners PT. Pertamina EP Cepu and the Cepu Block Cooperation Body, our contractors and the community,” said Jon M. Gibbs, president of ExxonMobil Cepu Limited.
Operator ExxonMobil Cepu Limited has a 45 percent interest in Banyu Urip, with PEPC having 45 percent, and four local government entities under BKS PI Blok Cepu – PT.Blora Patragas Hulu, PT. Petrogas Jatim Utama Cendana, PT. Asri Darma Sejahtera, and PT. Sarana Patra Hulu Cepu – having the remaining 10 percent.
PSC Contractors are contractors operating government owned upstream oil and gas projects. SKK Migas oversees these contractors in carrying out its activities.
CAUTIONARY STATEMENT: Statements of future events or conditions in this release are forward-looking statements. Actual future results, including project plans, schedules, and capacities; production rates; and ultimate recoveries could differ materially due to changes in market conditions affecting the oil and gas industry or long-term oil and gas price levels; political or regulatory developments; reservoir performance; technical or operating factors; the outcome of future commercial negotiations; and other factors discussed under the heading “Factors Affecting Future Results on the Investors page of our website at exxonmobil.com. References to oil volumes in this release may include quantities that are not yet classified as “proved reserves” under U.S. SEC definitions but that we expect will ultimately be produced. The term "project" as used in this release does not necessarily have the same meaning as under any government payment transparency reporting rules.