By the OGJ Online Staff
HOUSTON, Apr. 12 -- ExxonMobil Corp. said Thursday that Mobil Cepu Ltd., an affiliated company, has a major oil discovery in Indonesia at the Banyu Urip No. 3 (BU-3) well.
It said with estimated reserves of more than 250 million bbl, BU-3 well is one of the most significant oil discoveries in Indonesia in the past decade.
The company said the well encountered nearly 1,000 ft of gross oil and more than 300 ft of gross gas pay, and oil was tested at a rate of nearly 4,500 b/d from Middle Miocene carbonate and sandstone formations.
The BU-3 well is part of the onshore Cepu Technical Assistance Contract operated by Mobil Cepu in Central and East Java provinces. Pertamina, Indonesia's state-owned oil company, has taken an option to acquire 10% of the project.
Jon Thompson, president of ExxonMobil Exploration Co., said the discovery shows Indonesia remains a growth area despite recent security issues in North Aceh.
Planning for a phased, fast-track development is under way. Initial production is expected from the Banyu Urip discovery by 2003 through six to 10 wells utilizing an early production system in parallel with activities leading to full field development.