Banyu's Infil Clastic Well Urip Production 13,300 Barrels Of Oil Per Day

Photo illustration. (Doc. Pexels)

JAKARTA - The operator of Block Cepu, ExxonMobil Cepu Limited (EMCL), managed to produce the first oil from drilling infil plastic wells in 2024 amounting to 13,300 BOPD.

"Congratulations! This first well can produce 13,300 barrels. We hope that other wells can also make a significant contribution as well as make a big impact to be able to encourage oil and gas entrepreneurs in Indonesia that there is still the potential to increase our oil and gas production because currently in the oil sector Indonesia is a deficit," said Arifin, quoted on Saturday, August 10.

The government together with SKK Migas continue to strive to increase production according to the target of 1 million BOPD so that the petroleum deficit can be reduced. For this reason, the Minister of Energy and Mineral Resources asked for efforts to increase not only from the exhibition field, but also new seismic activities and new explorations that could accelerate the detection of new wells.

Arifin said, Indonesia still has a lot of oil potential. As in the Cepu Block, which today has produced 630 million barrels and has the potential to produce 1 new billion.

"There must be an acceleration of exploration so that there is certainty immediately. The government provides support for Exxon to carry out seismic and new exploration activities in other areas," said Arifin.

Regarding the achievement of the target in gas, Arifin is optimistic that it can be achieved with the large findings in the gas sector which are currently being encouraged to be produced immediately. Moreover, oil production is a challenge in the upstream oil and gas industry.

"We are open to receiving positive inputs on how to increase oil production," he said.

Meanwhile, the Head of SKK Migas Dwi Soetjipto on the same occasion said that SKK Migas paid great attention to efforts to maintain the production of the Banyu Urip Oil Field to remain optimal, considering that Banyu Urip is the second largest contributor with its contribution of around 25 percent of national production.

Dwi added that Banyu Urip Field production has exceeded the target in the plan of development (POD).

"Thanks to various efforts and breakthroughs made by SKK Migas and EMCL in maintaining field performance, namely increasing production while still paying attention to the capabilities and carrying capacity of existing reservoirs," he said.

After the successful drilling of the first well, it is hoped that in the fourth quarter of 2024 it will be onboard drilling the second well and provide additional production of up to 9,300 BOPD.

Investment for the seven well drilling reached USD203.5 million or equivalent to Rp3.25 trillion (exchange rate of Rp. 16,000 per US dollar) and is estimated to provide additional state revenues of US$2 billion or around Rp32 trillion is expected to provide additional oil of 42.92 MMSTB.

"These efforts can bridge Indonesia's potential in achieving the target of 1 MMBOPD and 12 BSCFD in this decade. We continue to explore these potentials, of course, in order to achieve long-term goals for energy independence," said Dwi.

BUIC drilling activities use platforms and equipment which are all made in Indonesia and operated by PT Pertamina Drilling Services Indonesia (PDSI) which is a subsidiary of PT Pertamina (Persero). This drilling shows the level of competence of PDSI in the field of oil and gas drilling, as well as the support of the upstream oil and gas industry for the growth of national companies and the commitment of SKK Migas and KKKS in implementing the level of domestic components (TKDN) in the upstream oil and gas industry.

The BUIC drilling also involves local contractors and absorbs local workers. This involvement has added economic value to the community around the area of operation.