BPMigas: ExxonMobil, Partners Need $1.3B to Develop Cepu Block

- BPMigas: ExxonMobil, Partners Need $1.3B to Develop Cepu Block

Friday, August 05, 2011
Dow Jones Newswires
JAKARTA
by Deden Sudrajat

ExxonMobil and its partners will need to invest around $1.3 billion to fully develop their oil production facility in the Cepu Block in Java, the head of the Indonesian oil and gas sector watchdog said Friday.

Raden Priyono, the chairman of upstream oil and gas regulator BPMigas, estimated production at the Banyu Urip oil field can reach 165,000 barrels of crude a day at full capacity, compared with the current 20,000 barrels a day.

Exxon has picked a consortium of Samsung Engineering and PT Triparta as a partner for one of its five engineering, procurement and construction contracts in Banyu Urip. The $746.3 million contract was the biggest and the first to be signed. BPMigas' Priyono expects the remaining contracts to be signed later this year.

Mobil Cepu and Ampolex (Cepu) Pte. Ltd., both subsidiaries of Exxon Mobil, have a combined 45% stake in the block, while Pertamina EP Cepu owns 45% and the Cepu Block Cooperation Body, or BKS, holds the remaining 10%.

Copyright (c) 2011 Dow Jones & Company, Inc.

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Exxon Finds 2nd Oil Field at Indonesia Cepu Block

Exxon Finds 2nd Oil Field at Indonesia Cepu Block

Monday, April 25, 2011
Dow Jones Newswires
by Andreas Ismar

ExxonMobil's Indonesian unit said it has discovered a second oil field at the Cepu Block it operates in East Java Province.

"Its similarity to the other Cepu fields provides confirmation of our exploration strategy on the block, and its proximity to Banyu Urip provides a good opportunity to advance development of this new oil discovery," Mobil Cepu Ltd. President Terry McPhail said.

The well is located about 14 kilometers from Banyu Urip, the first oil field found on the Cepu block in 2001.

The company will analyze data from the newly found Kedung Keris-1 field to evaluate the resource potential of the reservoir.

Mobil Cepu and Ampolex (Cepu) Pte. Ltd., both subsidiaries of Exxon Mobil, have a combined 45% stake in the block, while Pertamina EP Cepu owns 45% and the Cepu Block Cooperation Body, or BKS, holds the remaining 10%.