News listings

energy-pedia development and production

Indonesia flagIndonesia

Central & SE Asia / Australasia >>> Indonesia

Indonesia: ExxonMobil Cepu oil field to begin full production


29 Jul 2009

Photo - see caption

The ExxonMobil Corp's huge Cepu oil field in Indonesia is expected to start initial production in August nearly a decade after it was discovered and following a sharp slide in crude output in Southeast Asia's biggest economy.

Cepu, which ranks among the US major's top 10 projects worldwide and is Southeast Asia's biggest new field, has faced multiple obstacles, from land issues to the path of pipelines and the share of revenue and control with state oil firm Pertamina.

Here are some details of the $2.6 billion Cepu project in an area straddling Central and East Java.

- ExxonMobil used advanced 3-D seismic technology to find oil in Cepu in 2001

- Five years of wrangling with state oil firm Pertamina over control and share of revenue then followed before an agreement was reached in 2006 to jointly develop Cepu with Exxon unit Mobil Cepu Ltd as operator.

- Exxon and Pertamina hold 45% stakes, with the remaining 10% held by four local governments in East and Central Java. The revenue share is 85% for the government and 15% for contractors when the oil price is above $45 per barrel. If oil prices are lower then the investors get a bigger share.

EARLY PRODUCTION PHASE

- Some test production started in December and early output of 15,000-16,000 barrels per day (bpd) could begin in August, rising to 20,000 bpd by this year-end, energy watchdog BPMIGAS said.

- Six wells have been drilled for early production on Cepu's main Banyu Urip field, which is estimated to have reserves of 350 million barrels, including two to re-inject gas and water.

- Crude will be piped through a 2.5 km pipeline to a gas oil separation plant. From the plant around 6,000 bpd is due to go to a small refinery being built by private firm PT Tri Wahana Universal (TWU), while up to 14,000 bpd will be piped to storage facilities operated by Pertamina and Petrochina, which already has operations in the area, in Mudi.

- Oil from the storage area will then flow in a pipeline parallel to an existing pipeline to a floating storage facility in the Java Sea.

MAIN PRODUCTION PHASE

- Cepu is expected to reach maximum output of 165,000 barrels per day (bpd) of crude in 2012, or about a fifth of Indonesia's current crude output.

- A central processing facility will be built on 100 hectares (247 acres) near the main oil wells to handle maximum output.

- A new 76 km pipeline will also be built to directly transport maximum output to a new floating storage facility for shipment.

- Cepu's total oil reserves are estimated at 600 million barrels and the company will start new exploratory drilling in other areas at the end of the year. The block includes seven other fields such as Alas Dara/Kemuning, Jambaran and Cendana.

- The field is also estimated to have 1.3 trillion cubic feet of gas reserves, which may be exploited later
 





Bookmark and Share


A global information service for upstream oil and gas opportunities - divestitures, farmins and farmouts and licensing rounds.


Subscriber Only Deals

Current deals: 1659
Completed deals: 5011

Company Profiles

Current Company Profiles: 2603

Corporate Activity

Current Corporate Activity articles: 3124

Companies Looking

Current number of articles: 422

Company Sales

Current Company Sales articles:1275

Geostudies

Current Geostudies articles: 597

How to subscribe

energy-pedia Jobs

RSS Feed Widget
See all jobs...


energy-pedia Databank

The energy-pedia databank contains links to information on the world financial and energy markets, including share prices, oil and gas prices and the global stock exchanges. Read more...



energy-pedia Glossary

A list of commonly used terms in the oil and gas industry. Read more...

Subscribe

Subscribe to the FREE
energy-pedia Daily Newsletter
Subscribe

Government of South Australia
Bayphase
RSK Logo 149
SLR Consulting logo
Union Jack Oil 149
count geophysics
Rose & Assocs 149
energy365
EP Consult Energies
Lynx Information Systems
OPC
KL Publishing
About energy-pedia

energy-pedia news is a FREE news service written and edited by E and P professionals for E and P professionals.

We don't just report the news, we give you the technical background as well, with additional information derived from our unique energy-pedia opportunities service.
Contact us

energy365 Ltd

238 High Street
London Colney
St Albans
UNITED KINGDOM

Tel: +44(0)1727 822675

Email: info@energy-pedia.com