Jakarta (ANTARA News) - ExxonMobil has officially told the government of the delay for 10 months of its oil production at Cepu Block oil field in Central Java from the initial target in the first quarter of 2009.
Head of the Upstream Oil and Gas Regulating Body (BP Migas), Kardaya Warnika told Energy and Mineral Resources Commission of the House of Representatives (DPR) at a hearing here on Monday.
"They have problems with land clearance and locations of oil drilling in a residential area and rice fields. Therefore, they have asked for a delay of production for ten months," he said.
The other problems they were facing included the change in the design of the oil field development from the previous one, he said.
He said that the design had to be changed because the number of oil fields which would be developed differed from the one made previously.
"The present number of oil fields is not the same as the one previously designed because a number of fields have been transferred to the state-owned oil company Pertamina," he said.
Kardaya said several other wells had changed form so that a new design and development plan had to be made.
But, he said, BP Migas had asked the Cepu Block oil operators to produce oil in the first quarter of 2009.
Kardaya said the oil operators could do that by utilizing production facilities owned by the Joint Operating Body (JOB) of Pertamina-PetroChina East Java ltd.
The location of the JOB is close to the Bayu Urip oil field which will be jointly operated by ExxonMobil through its subsidiary Mobil Cepu Limited (MCL) and Pertamina subsidiary PT Pertamina EP Cepu.
"At present, MCL is studying matters that could allow it to hasten the oil production," he said.
In the first stage, the Block Cepu field is expected to produce 20,000 barrels per day. The production will be raised in stages until it reaches its production peak at 165,000 barrels per day. (*)