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First of Banyu Urip development contracts awarded

ExxonMobil Corp. has let a contract for a central processing facility to treat oil, gas, and water in connection with pressure maintenance for full development of giant Banyu Urip field on the Cepu block on East Java, Indonesia.

Construction is targeted for completion in 36 months, and the start-up of full field production is expected after that pending regulatory approvals, the company said. Peak output is to rise to 165,000 b/d of oil from an estimated 450 million bbl of recoverable oil.

Four other major contracts are expected to be let by the end of 2011. Those contracts will be for a 60-mile onshore export pipeline, offshore pipeline and mooring tower, conversion of a 1.7 million bbl floating storage and offloading tanker, and other facilities. Tankers will load crude oil from the FSO for transport to Indonesian and world markets.

The CPF engineering, procurement, and construction contract went to a consortium of PT Tripatra Engineers & Constructors, a subsidiary of PT Indika Energy Tbk, and Samsumg Engineering Co. Ltd. The work includes three well pads connected to the CPF.

Early oil production from Banyu Urip began in 2009 from facilities with demonstrated capacity of more than 20,000 b/d. Full field development will involve 49 producing and injection wells on the three pads and the CPF to treat produced gas and water for reinjection and crude oil for pipeline transport.

ExxonMobil’s Mobil Cepu Ltd. (MCL) is operator of the Cepu block with 45% interest. The other co-venturers are Pertamina with 45% interest and four local government companies that hold 10%.

Earlier this year, ExxonMobil announced the Kedung Keris-1 oil discovery on the block 9 miles from Banyu Urip, discovered in 2001 (OGJ, May 2, 2011, Newsletter). The company said it is analyzing well data to evaluate the full resource potential of that reservoir.

ExxonMobil said it is actively working on exploration and development opportunities to increase its participation in Indonesia, where its affiliates and predecessors have operated for more than 100 years and invested more than $19 billion since 1968.


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