ExxonMobil Cepu Produces 540 Million Barrels Of Oil, Indonesia Gets Rp310 Trillion

JAKARTA - Head of the Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) Dwi Soetjipto revealed that the ExxonMobil Cepu Limited (EMCL) Cooperation Contract Contractor (EMCL) succeeded in carrying out the 800th lifting production from the Working Area ( WK) Cepu.

A total of 630,000 barrels of cargo oil belonging to the government and Pertamina will be sent via the floating storage and offloading (FSO) Gagak Rimang to Pertamina's ship.

With this performance, Dwi said the cumulative production of WK Cepu is more than 540 million barrels of oil.

This special cargo will be brought to STS Tuban and sent to the Pertamina Refinery to support Indonesia's energy needs. The oil in the lifting is produced from the Cepu WK in Bojonegoro and processed at the Banyu Urip Central Processing Facility.

The oil is then transported through a 95 km pipeline to Palang sub-district in Tuban district, then to the Gagak Rimang FSO off the coast of Tuban, East Java.

"When calculated since the Cepu WK started production, with a total investment of around Rp. 57 trillion or US$4 billion, the Cepu WK has produced 540 million barrels of oil and provided more than Rp. taxes," said Dwi to reporters, Wednesday, May 25.

Dwi added that the 800th lifting significantly exceeded the initial development plan for the Cepu WK with oil reserves estimated at 450 million barrels.

This is an extraordinary achievement in the midst of Indonesia's upstream oil and gas conditions which are trying to meet the national oil and gas production target.

"We express our appreciation and congratulations on EMCL's success for its contribution to the safe, reliable and efficient operation of the Cepu WK, as well as helping to maintain Indonesia's energy security by contributing around 30 percent of national oil production," said Dwi.

Dwi added, the Cepu WK operation has contributed to Indonesia's revenue equivalent to 5.5 times the initial investment.

In the future, Dwi said, the estimated potential of Banyu Urip's oil reserves which have been doubled and the Banyu Urip Infill Clastic Drilling Program carried out, Indonesia will receive an additional income of about 12 times the total investment during the Cepu WK project cycle.

SKK Migas fully supports the target towards production of 1 billion barrels proclaimed by EMCL which is reflected in the theme of today's activities.

EMCL's ambition is in line with efforts to increase national oil and gas production to support energy security.

"We hope that EMCL in coordination with SKK Migas and other stakeholders can maximize the potential generated by the Cepu WK, so that it can provide optimal state revenue and be able to grow a multiplier effect on the local economy. Currently, WK Cepu is the largest oil producer in Indonesia and will continue to support upstream oil and gas to achieve the national target of 1 million BOPD (barrels of oil per day) and 12 BSCFD (billion standard cubic feet per day) of gas, or equivalent to 3.2 million barrels of oil equivalent per day by 2030," said Dwi.

Meanwhile, ExxonMobil Indonesia President Irtiza Sayyed said, EMCL with good cooperation with the Government of Indonesia has been able to produce a cumulative production of Cepu Block oil of more than 540 million barrels by mid-May 2022 with safe, reliable and efficient production operations.

"We can also say that this 800th lifting is a proof of world-class safety from the Cepu WK operation with no work accident records this year," said Irtiza.

Since 2015, said Irtiza, WK Cepu's efforts to achieve production of more than 540 million barrels of oil, more than 460 local and national companies have participated in supporting these efforts.

"The multiplier effect of the Cepu WK investment and operation has brought hundreds of local companies to develop experience and benefit from knowledge and technology transfer," said Irtiza.

Since development of the Cepu WK began, more than 6,000 of Indonesia's best workers have assisted ExxonMobil to support its operations.

More than 500 of them are sent on international assignments to work with the world's best people.

"Today, more than 99 percent of the Cepu WK operations are managed by the best Indonesians who have managed to achieve a cumulative production of more than 540 million barrels of oil," concluded Irtiza.