Banyu Urip is the Largest Oil Producer in Indonesia, Says Energy Minister

MINISTRY OF ENERGY AND MINERAL RESOURCES

REPUBLIC OF INDONESIA

PRESS RELEASE

NUMBER: 139.Pers/04/SJI/2021

Date: 22 April 2021

Banyu Urip is the Largest Oil Producer in Indonesia, Says Energy Minister

Cepu block in 2020 produced 210 thousand barrels of oil per day (mbopd) or equivalent to 30% of national oil production. With such large production, Cepu block has positioned itself as the largest oil producer in Indonesia, Minister of Energy and Mineral Resources (EMR), Arifin Tasrif, has said.

Cepu block will contribute approximately USD45 billion to state revenue, at a price of around USD70 per barrel, during the term of the cooperation contract.

"The production of Banyu Urip oilfield is an impressive achievement because the project has been able to increase production capacity by up to 20% with existing facilities and carried out operations safely," said Minister Arifin during a working visit to the Banyu Urip oilfield in Cepu block and the Gas Processing Facility (GPF) Jambaran Tiung Biru on Thursday (22/4).

Production at Banyu Urip oilfield began in December 2008, while an initial production facility with a capacity of 20 mbopd became online in August 2009. Through innovation and improvement by the project management, production increased to over 80 mbopd at the start-up in 2015. Production has continued to grow, first to 165 mbopd then to 235 mbopd, while maintaining safe and reliable operations.

The development cost of Cepu block is relatively low, at USD4.5 per barrel compared to industry average of USD15 per barrel. Meanwhile, the production cost in 2019 was around USD2.9 per barrel, while in 2020 around USD1.9 per barrel, one of the lowest in Indonesia.

Banyu Urip oilfield is made up of 3 wellpads with 29 production wells and 16 injection wells, as well as 1 production well in Kedung Keris oilfield which is connected to the wellpad.

Banyu Urip oilfield is the first development in Cepu block working area. The field is estimated to contain 450 million barrels of crude oil, as announced in April 2001. Currently, the Estimated Ultimate Recovery (EUR) of Banyu Urip has more than doubled the original POD, namely from 450 mbo to 940 mbo.

Cepu Production Sharing Constract (PSC) was signed on 17 September 2005, which includes the contract area of Cepu in Central Java and East Java provinces. Contractors under Cepu PSC include ExxonMobil Cepu Limited (EMCL), Ampolex Cepu Pte Ltd., PT Pertamina EP Cepu, and four enterprises owned by regional governments, namely PT Sarana Patra Hulu Cepu (Central Java province), PT Asri Dharma Sejahtera (Bojonegoro regency), PT Blora Patragas Hulu (Blora regency), and PT Petrogas Jatim Utama Cendana (East Java province).

ExxonMobil holds 45% of the total participating interest in Cepu block, PEPC 45%, and the regional government-owned enterprises 10%. Cepu PSC will last until 2035. A Joint Operating Agreement (JOA) was signed by the contractors, where ExxonMobil represents other contractors as the operator of Cepu PSC.

Minister Arifin also explained the delay in the completion of Jambaran Tiung Biru (JTB) Gas Processing Facility (GPF).

"Due to COVID-19, the JTB project is late, but we have asked the management to catch up with the delay so that the project can produce gas by the end of the year," concluded Arifin. (IY)

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