Well Drilling of Banyu Urip Project to Commence

30 April 2013

Surabaya – The drilling of 42 wells in Banyu Urip Field, Cepu Block of Bojonegoro, East Java, will be immediately started. It is planned that 29 production wells and 13 injection wells will be drilled. At this phase, the peak production of 165,000 barrels oil per day will be able to reach by the block at the end of 2014.
“The first stage will drill eight (8) new wells in well pad B,” said Chairman of Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas), Rudi Rubiandini when officially inaugurating the well drilling of Banyu Urip Field in Bojonegoro, Tuesday (30/4). The event was also attended by Director of Upstream Pertamina, M. Husen, President Director Pertamina EP Cepu, Amril Thaib, Deputy Head for Economic Affairs of Bojonegoro Regional Government, Nono Purwanto, and Vice President Public and Government Affairs, Mobil Cepu Ltd., Erwin Maryoto.

Rudi explained that following that drilling, the new wells in well pad C and additional wells in well pad A will be drilled consecutively. Those 42 wells are drilled by using two (2) skidding rigs built and operated by national companies. “It is very proud that the Indonesian sons and daughters are able to build rigs applying new and sophisticated technology,” Rudi said.

As the information, in addition to well drilling, other production facilities are currently being constructed which are divided into five projects of engineering, procurement, and construction (EPC). To date, the construction of those five EPC projects has reached 51 percent in progress. “Hopefully, the first oil production of 90,000 thousand barrels per day will be able to reach in August 2014,” said Rudi. The said volume has included production from Gas Oil Separation Plant (GOSP) which is currently generated production of approximately 26,000-28,000 barrels per day.

Further, gradually within three (3) months, the production will be increasing up to the peak production of 165,000 barrels per day. It means, by November 2014 the peak production will be managed to achieve. “Such peak production will be maintained for approximately more than 3 years,” Rudi said.

SKK Migas asked all parties, in particular MCL and EPC contractors, to cooperate in the completion of the project in accordance with the commitment as set forth in the contract. Rudi confirmed, this project is important and strategic for the state resilience in energy sector. If this project can run as planned, the Banyu Urip Field may generate contribution of oil production by approximately 16.5 percent of the national oil production target at the end of 2014.

These figures are very significant for the state revenues. Therefore, Banyu Urip project must be executed in accordance with the target of the project. “In the conditions, it is in line with schedule, quality, cost, compliance with all regulations, and executed securely and safely,” Rudi added.

SKK Migas extends appreciation to the regional government, local people, and relevant authorities that have fully supported this strategic project. For example, the issuance of required permits and the assistance in land acquisition process in order to commence the implementation of the project.

Erwin added, MCL and its contractor have involved regional potentials, among others, by giving the widest possible opportunity to any of local community who meets the requirements to be hired for this project. The Regional Government of Bojonegoro is also involved in the implementation of trainings required for these Banyu Urip project activities. “This good cooperation and coordination will be kept maintained,” Erwin concluded.