LOS ANGELES, Jan. 19 – Indonesia's state-owned PT Pertamina and ExxonMobil Corp. subsidiary Mobil Cepu Ltd. (MCL) plan to invest $279 million to drill 12 wells in Banyu Urip oil field on the Cepu Block, East Java.
Pertamina Vice-Pres. Iin Arifin Takhyan said regulator BP Migas has approved the budget, which will be evenly split by Pertamina and MCL. Each holds a 45% stake in the venture.
Banyu Urip is a 2001 discovery estimated to hold more than 250 million bbl of reserves. Initial production is expected to be 25,000 b/d, eventually rising to 165,000 b/d.
In early January, Indonesian officials said the Cepu Block will start producing oil in first-quarter 2009, a quarter later than originally scheduled (OGJ Online, Jan. 4, 2007).
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