ExxonMobil sets target for Cepu oil block
ExxonMobil sets target for Cepu oil block
JAKARTA (JP): U.S.-based ExxonMobil Oil Indonesia Corp. hopes
to produce up to 100,000 barrels per day (bpd) from the Cepu oil
block in Central Java and East Java.
"The production rate will be around 100,000 bpd by the year
2004," a company official said on Tuesday.
Last week, ExxonMobil announced that its subsidiary Mobil Cepu
Limited had discovered new oil reserves at the Cepu technical
assistance contract (TAC) block. The reserves are believed to
amount to about 250 million barrels of oil.
Although other officials at ExxonMobil declined to comment on
Cepu's estimated production rate, the company's website confirmed
the official's statement.
However, while the website said Cepu would reach a production
rate of 100,000 bpd by 2003, the source said this rate of
production would be reached by 2004.
ExxonMobil's vice president of production, Lance Johnson, also
said initial production at the oil block could begin as early as
2003.
"That will be ahead of a full field development program, but
we will try to get some early production on a more limited basis
by the year 2003," he said.
At present, drilling at Cepu has been completed only on the
Banyu Urip number three well, which is one of eight wells in the
block.
State oil and gas company Pertamina has said it has agreed to
accept a 10 percent stake in the project.
"It will be a 10 percent participating interest. That is the
basis of negotiations between Exxon and Pertamina," Johnson said.
He said ExxonMobil and Pertamina were still discussing the
value of the 10 percent stake. Johnson declined to say when the
two companies would come to an agreement, only saying they would
proceed as quickly as possible.
The Cepu block, which covers 1,670 square kilometers, was
owned by Pertamina before it was transferred to Humpuss Patragas
in 1990 under the TAC scheme. Humpuss Patragas was, at the time
of the transfer, controlled by former president Soeharto's
youngest son Hutomo Mandala Putra. Humpuss later sold 49 percent
of the block to Australian firm Ampolex Pty Ltd., which is a unit
of ExxonMobil.
ExxonMobil bought out Humpuss's remaining 51 percent share in
1999, following pressure from the government for Soeharto's
family and associates to no longer take a role in Pertamina's
businesses.
Separately, the vice president for exploration and production
at Malaysian oil and gas company Petronas, Dato' Mohamad Idris
Mansor, said his company was looking at 23 new oil blocks in
Indonesia that were recently opened for bidding.
"We're looking at the new blocks offered by the government and
I think we will make a lot of studies, and if it looks positive
than we will bid for the blocks," Mansor said.
He declined to say which block were of particular interest to
Petronas.
Last month, the government opened the tender for 23 new oil
blocks, including deep-sea blocks in the potentially oil-rich
Makassar Straits. (bkm)
JAKARTA (JP): U.S.-based ExxonMobil Oil Indonesia Corp. hopes
to produce up to 100,000 barrels per day (bpd) from the Cepu oil
block in Central Java and East Java.
"The production rate will be around 100,000 bpd by the year
2004," a company official said on Tuesday.
Last week, ExxonMobil announced that its subsidiary Mobil Cepu
Limited had discovered new oil reserves at the Cepu technical
assistance contract (TAC) block. The reserves are believed to
amount to about 250 million barrels of oil.
Although other officials at ExxonMobil declined to comment on
Cepu's estimated production rate, the company's website confirmed
the official's statement.
However, while the website said Cepu would reach a production
rate of 100,000 bpd by 2003, the source said this rate of
production would be reached by 2004.
ExxonMobil's vice president of production, Lance Johnson, also
said initial production at the oil block could begin as early as
2003.
"That will be ahead of a full field development program, but
we will try to get some early production on a more limited basis
by the year 2003," he said.
At present, drilling at Cepu has been completed only on the
Banyu Urip number three well, which is one of eight wells in the
block.
State oil and gas company Pertamina has said it has agreed to
accept a 10 percent stake in the project.
"It will be a 10 percent participating interest. That is the
basis of negotiations between Exxon and Pertamina," Johnson said.
He said ExxonMobil and Pertamina were still discussing the
value of the 10 percent stake. Johnson declined to say when the
two companies would come to an agreement, only saying they would
proceed as quickly as possible.
The Cepu block, which covers 1,670 square kilometers, was
owned by Pertamina before it was transferred to Humpuss Patragas
in 1990 under the TAC scheme. Humpuss Patragas was, at the time
of the transfer, controlled by former president Soeharto's
youngest son Hutomo Mandala Putra. Humpuss later sold 49 percent
of the block to Australian firm Ampolex Pty Ltd., which is a unit
of ExxonMobil.
ExxonMobil bought out Humpuss's remaining 51 percent share in
1999, following pressure from the government for Soeharto's
family and associates to no longer take a role in Pertamina's
businesses.
Separately, the vice president for exploration and production
at Malaysian oil and gas company Petronas, Dato' Mohamad Idris
Mansor, said his company was looking at 23 new oil blocks in
Indonesia that were recently opened for bidding.
"We're looking at the new blocks offered by the government and
I think we will make a lot of studies, and if it looks positive
than we will bid for the blocks," Mansor said.
He declined to say which block were of particular interest to
Petronas.
Last month, the government opened the tender for 23 new oil
blocks, including deep-sea blocks in the potentially oil-rich
Makassar Straits. (bkm)