Indonesian Political, Business & Finance News

ExxonMobil Increases Oil Production by 7,500 Barrels per Day

| Source: TEMPO_ID_BISNIS Translated from Indonesian | Energy

EXXONMOBIL Cepu Limited has reported a jump in oil production from the Banyu Urip A07 well of 7,500 barrels per day after implementing a water shut-off (WSO) programme to curb unwanted water inflow. Before the intervention, the well produced around 4,800 barrels per day. After the programme, output rose to 12,300 barrels per day.

This increase far exceeded the initial target of 1,000 barrels per day. SKK Migas head Djoko Siswanto said the additional production directly contributed to increasing the nation’s oil lifting.

“Best practices like this need to be replicated on other fields to accelerate national lifting and strengthen energy resilience,” he said in a written statement on Wednesday, 4 March 2026.

He explained that the Banyu Urip field has long been one of Indonesia’s main oil producers. Therefore, any production increase from this field is strategic for maintaining supply and supporting energy security.

The WSO programme stops water flow from the lower zone of the well to increase the proportion of oil produced. The methods used include installation of a bridge plug, recompletion, and acidising stimulation. This approach enables optimisation of existing wells without new drilling, allowing the additional production to be obtained faster and at lower cost.

According to Djoko, the right technological interventions can boost production in a relatively short time while promoting national lifting. He also noted that the efficiency achieved adds important value and could serve as an example for other fields.

This production increase shows that optimising existing wells can be an effective and cost‑efficient strategy to sustain the upward trend in Indonesia’s oil production, without always relying on drilling new wells.

“Operationally, the work was performed without a rig or rigless by utilising a wireline unit. This makes the process faster and more economical. In terms of cost, budget realisation was around 57 percent of the total approved funds,” Djoko said.

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