Banyu Urip oil field discovery announced in April 2001 and is estimated to have an oil content of more than 250 million barrels. At peak production period, Banyu Urip oil field has a design production capacity of up to 165 thousand barrels of oil per day. Beside these crude oil reserves, the Tiung Biru and Jambaran gas fields at Cepu block concentrates the natural gas reserves in the Cepu Block.
Profile of Cepu Block in Bojonegoro
Bojonegoro Regency (Indonesian: Kabupaten Bojonegoro, older spelling is Kabupaten Bodjanegara) is a regency in East Java, Indonesia, about 110 km west of Surabaya. Bojonegoro is located in the inland part of northern Java plain, on the banks of the Bengawan Solo river, the largest river in Java.
Previously known as a major producer of teak and tobacco, Bojonegoro is a focus of attention in Indonesia as a new oil field has been found in this area.
Cepu Block is managed by Mobil Cepu Ltd. (MCL), Ampolex Cepu Pte Ltd, PT Pertamina EP Cepu and four provincial enterprises (Badan Usaha Milik Daerah / BUMD), namely PT Sarana Patra Hulu Cepu (Central Java), PT Asri Dharma Sejahtera (Bojonegoro), PT Blora Patragas Hulu (Blora), and PT Petrogas Jatim Utama Cendana (East Java) which are incorporated into the contractor under the Cepu PSC.
Mobil Cepu Ltd.. (MCL) and Ampolex (Cepu) Pte. Ltd.., both are subsidiaries of Exxon Mobil Corporation.
PT Pertamina EP Cepu, a subsidiary of PT Pertamina.
While ExxonMobil holds 45 percent of the total shares Cepu participation. Cepu contract cooperation will continue until 2035.
Holding 600 million barrels of crude oil, the Cepu Block is well known by the Banyu Urip major discovery contributing alone for 250 million barrels.
Banyu Urip oil field discovery announced in April 2001 and is estimated to have an oil content of more than 250 million barrels. At peak production period, Banyu Urip oil field has a design production capacity of up to 165 thousand barrels of oil per day.
Beside these crude oil reserves, Jambaran concentrates the natural gas reserves in the Cepu Block.
Together with Tiung Biru standing just outside the Cepu Block, the unitized fields represent recoverable reserves of:
– 1.2 trillion cubic feet (tcf) of natural gas
– 18.6 million barrels of condensate
Tiung Biru and Jambaran Gas Fields Development Project
ExxonMobil and Pertamina have agreed to prepare the call for tender for the front end engineering and design (FEED) work to develop the Tiung Biru and Jambaran gas fields at Cepu block across Central Java and East Java Provinces in Indonesia. (www.2b1stconsulting.com)
In February 2013, the Indonesian regulator SKK Migas approved the program of development (POD) submitted by ExxonMobil and Pertamina to move in production the gas and condensate reserves of the Tiung Biru and Jambaran fields.
According to the POD submitted to SKK Migas, representing the Indonesian Authorities, Pertamina and ExxonMobil are planning to spend $3.3 billion to develop the Tiung Biru and Jambaran gas fields.
This investment will be split between:
– $1.4 billion in capital expenditure
– $1.9 billion in operations expenditure
Pertamina and ExxonMobil are planning a production for gas and condensate from 2017 to 2035.
Banyu Urip full field development (Source: ExxonMobil)
Picture – (Source: http://www.2b1stconsulting.com)
Full field development consists of
- Central Processing Facilities (CPF),
- onshore and offshore pipelines and
- a floating storage and offloading facility.
The CPF, situated about 10 km southeast of Cepu and 20 km southwest of Bojonegoro in the center of the oil field, will process and treat the crude oil produced. Natural gas produced along with the crude oil will be used for power generation at the CPF.
Oil recovery from the Banyu Urip field will be maximized by water injection wells to help maintain pressure in the reservoir and sweep the oil to the producing wells. The injection water will be supplied from produced water and flood water from the Bengawan Solo River during rainy season.
The treated oil will be transported through a new 20 inch insulated buried pipeline to the coast at Tuban and thereafter through a sub sea pipeline to a Floating Storage and Offloading (FSO) facility.
Oil transportation tankers will load crude oil from the FSO for transportation to domestic and world markets.
Banyu Urip Oil Field Development Project
The development of the Banyu Urip oil field at Cepu Block to produce oil is implemented in five EPC packages.
- EPC-1 for the construction of production facilities worth U.S. $ 746.3 million were carried out by a consortium of PT Tripatra Engineering – Samsung Engineering.
- EPC-2 to work on the design and installation of the pipeline worth U.S. $ 57.03 million by PT Inti Karya Persada Teknik (IKPT) and PT Kelsri.
- EPC-3 to build offshore pipeline and mooring tower worth U.S. $ 131.64 million were undertaken by PT Rekayasa Industri and LIKPIN LLC.
- EPC-4 to build floating storage offloading / FSO worth U.S. $ 298.7 million were produced by PT Scorpa Pranedya and Sembawang Shipyard.
- EPC-5 to build supporting facilities such as dams, offices, and residences of employees by PT Hutama Karya and PT Rekayasa Industri.
“The execution of the five EPC packages has reached an average of 80%. Some of the EPC package is still below average, but that does not mean the project execution is slow”, said Vice President of Government and Public Affairs ExxonMobil Erwin Maryoto to Bisnis Indonesia on 02/18/2014.
EPC-1 for the construction of production facilities
A consortium of PT Tripatra Engineering, a subsidiary of PT Indika Energy Tbk, and Samsung Engineering, finally wins the bid for the construction of EPC’s production facility at Cepu Block.
A consortium will handle the production facility project for the engineering, procurement, and construction (EPC) at Cepu Block in a border area of Central Java and East Java.
EPC-4 to build floating storage offloading / FSO
Sembcorp Marine’s subsidiary Sembawang Shipyard, in a consortium arrangement with PT Scorpa Pranedya, has secured a US$300 million Floating Storage Offloading (FSO) tanker conversion contract from Mobil Cepu Ltd, a subsidiary of Exxon Mobil Corporation, contractor for the Indonesian Oil and Gas Regulatory Body (SKK Migas) for Cepu Block.
PT Scorpa Pranedya is an Indonesian shipowning and ship-management company.
Under the contract, the Shipyard is responsible for the engineering, procurement, construction, commissioning and hook-up work of a very large crude carrier (VLCC)-sized floating storage and offloading vessel /FSO for the Banyu Urip project in Indonesia.
EPC-5 for Construction of support facilities
Head of Licensing Agency Government Bojonegoro Bambang Waluyo said Bojonegoro Regent Suyoto has issued building permits construction of seven principles of EPC5 since before the Idul Fitri holiday. Such permission, he said, had been signed on Thursday, August 16, 2012 but the news is exposed now. “It’s signed by Mr. Regent Suyoto,” said Bambang told Tempo, Wednesday, August 29, 2012.
According to him, seven infrastructure projects that will be built around Banyu Urip, precisely in the Mojodelik village, Bojonegoro. The seven buildings include the admin building B, A and B house operation, dommitere, community center office and lobby, as well as sports and fitness center and a medical building.
Mojodelik village located about 22 kilometers southwest of the city of Bojonegoro.
Banyu Urip Oil Production Targets
The Government estimates based on the last evaluation Banyu Urip Oil Field in Cepu Block production will delay four months from July to November 2014. (Republika, 27/12/2013).
Banyu Urip oil field in Cepu Block is estimated to escalate to 165,000 barrels per day (bpd) in the peak production.
Video-1: “The Cepu Block” (By: RevenueWatch)
Video-2: “Working Together” (By: RevenueWatch)
Video-3: “PT. Pertamina EP Cepu Company Profile” (By: Pertamina EP Cepu)
References / Read more :
- Cepu Block, http://www.exxonmobil.co.id/indonesia-english/pa/about_where_cepu.aspx
- Produksi Blok Cepu Mundur November 2014, 27 December 2013, http://www.republika.co.id/berita/ekonomi/bisnis/13/12/27/mygu37-produksi-blok-cepu-mundur-november-2014
- Blok Cepu , http://www.tempo.co/topik/masalah/969/Blok-Cepu
- Bojonegoro Rilis Izin Prinsip Proyek EPC5 Cepu, http://www.tempo.co/read/news/2012/08/29/090426193/Bojonegoro-Rilis-Izin-Prinsip-Proyek-EPC5-Cepu
- Industri Migas – Produksi Blok Cepu November, Bisnis Indonesia, page 7, 19-Feb-2014.
- ExxonMobil optimis produksi Blok Cepu sesuai target, 18 Feb 2014, http://ekbis.sindonews.com/read/2014/02/18/34/836941/exxonmobil-optimis-produksi-blok-cepu-sesuai-target
- Sembcorp Marine’s Shipyard Secures FSO Tanker Conversion Contract, http://en.eshiptrading.com/news/d/221/1069/
- Pertamina and ExxonMobil to build Indonesia Cepu Gas Plant, 16-Sep-2013, http://www.2b1stconsulting.com/pertamina-and-exxonmobil-to-build-indonesia-cepu-gas-plant/
- Tripatra Handles EPC Project Of Cepu Block, http://tripatra.bvmdigital.com/author/Ivan/
- Blok Cepu, http://id.wikipedia.org/wiki/Blok_Cepu
- Bojonegoro Regency, http://en.wikipedia.org/wiki/Bojonegoro_Regency