ExxonMobil Corp. has brought on stream its giant Banyu Urip oil field on the Cepu block in East Java, Indonesia, after overcoming disputes with state-run Pertamina.
The field was discovered in 2001 and hailed as one of the largest in Asia in the past 15 years. However, disagreements between ExxonMobil and Pertamina slowed development plans.
A final investment decision was made in 2012, although early limited production did commence in late 2008 (OGJ Online, Dec. 12, 2008).
Pertamina relented because of Indonesia’s rising oil demand and declining production from existing fields.
The development has more than 50 wells, a central processing facility, and a 1.7-million bbl capacity floating production, storage, and offloading vessel.
Production began at a rate of 75,000 b/d and this is expected to ramp up to 200,000 b/d by yearend.
At full production, Banyu Urip will be Indonesia’s largest oil project. Recoverable reserves are estimated to be 375-450 million bbl.
