Eric Watkins
Senior Correspondent
LOS ANGELES, Oct. 23 -- Indonesia's Cepu Block is unlikely to start producing gas in 2009 as the government hoped, according to operator ExxonMobil Oil Indonesie (EMOI).
Company Director Maman Budiman said EMOI is still focused on producing oil, which is expected to begin in 2008, but it has yet to confirm the site's gas reserve volumes by further drilling.
Budiman said the company would soon solicit tenders for drilling rigs, but he did not specify a bid date or how many rigs would be involved.
In September, ExxonMobil Corp. said it hoped to start oil output from the Cepu project by 2008, said initial volumes would be small because of development problems (OGJ Online, Sept. 5, 2006).
The Indonesian government recently expressed hope that production could start early in 2009 to help meet domestic demand growth for gas, which is expected to reach 15,000 MMscfd by 2025.
The government plans to discontinue LNG export contracts after 2010 to make 8.3 million tonnes/year available for the domestic market.
Contact Eric Watkins at [email protected].