Oil Ratio And Watercut Gas Is The Cause Of The Decline In EMCL Production Of 7,000 BOPDs

JAKARTA - The Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) reported that in mid-July 2024, Banyu Urip Field, owned by oil and gas giant ExxonMobil Cepu Limited (EMCL) experienced oil loss of 7,000 BOPDs.

Head of the SKK Migas Program and Communication Division, Hudi D. Suryodipuro, explained that the Banyu Urip Field experienced an increase in the Gas Oil Ratio (GOR) and an increase in water cut which caused Loss Production Opportunity (LPO) so that EMCL production no longer sustains production at the 150 MBOPD rate.

In fact, EMCL's production is still the second mainstay after PHR, which is the backbone of the contribution of National oil production, where until July 31, 2024, EMCL has succeeded in exceeding the WP&B and 2024 APBN targets.

"The increase in GOR is a condition where the ratio of gas production is increasing compared to oil production, and the increase in water cut is a condition where the content of the amount of water is produced higher compared to oil production," said Hudi, Thursday, August 8.

Hudi admitted that the LPO experienced by ExxonMobil Cepu was quite significant. Moreover, SKK Migas and other KKKS are trying to optimize production from drilling, workover and well service activities, but the contribution obtained has not been able to close directly the production decline gap at EMCL.

"SKK Migas pays special attention to the Banyu Urip field considering its very large production and if there is a production disruption both due to surface and subsurface constraints, this immediately has a very significant impact on Indonesia's production," he added.

Hudi said that SKK Migas and EMCL did not remain silent about the ongoing problems, a series of Gas Shut Off and Water Shut Off activities and maintenance of the production rate were always carried out to maintain a sharper decline in production.

The good news is that the development of the Banyu Urip Infill Classic (BUIC) project is quite good so it is estimated that in the near future it will be onstream 1 well, namely B13 with a production potential of 10,000 BOPD and of course it will increase oil production in Banyu Urip and national production as a whole.

"This oil means a lot to SKK Migas because domestic production is not sufficient, so it must be imported. We think that oil is used when it means to the state. So that efforts to increase oil production continue to be carried out by SKK Migas and KKKS," concluded Hudi.