Kedung Keris Field in Cepu Block to Commence Production in 2019

ExxonMobil hopes that the Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) will approve the proposed plan of development (PoD) for the Kedung Keris Field in the Cepu Block soon. Vice President of Public and Government Affairs of ExxonMobil Cepu Erwin Maryoto said that if it is going to meet its target, the Kedung Keris Field will have to commence production in late 2019.

ExxonMobil submitted the proposed PoD for the Kedung Keris Field early April. However, SKK Migas is still reviewing the proposal. "We have submitted additional data as requested by SKK Migas. The evaluation is still underway," said Erwin after attending oil and gas discussions held by the Indonesia Petroleum Association (IPA) in Jakarta, Tuesday (10/5). (Read: Exxon Proposes to Develop Kedung Keris Field in Cepu Block)

SKK Migas Work Procedure Guideline No. 072/PoD/2010 on PoD sets the time for approval of a proposed PoD at 40 days after the proposal is submitted. Provided that the necessary data is included in the paperwork submitted, SKK Migas will process the application within 30 days.

After the PoD is approved and the field ready for production, the oil will be piped to the central processing facility in Banyu Urip to be refined. The field is expected to produce 5,000 barrels of oil per day (bpd).

Additional production from this field will maintain the Cepu Block’s production at its highest peak. Currently, peak production from the block’s Banyu Urip Field is 165,000 barrels per day. This will only last for three years, after which the production will decline. (Read: Oil Output of Cepu Block to Rise 12 Percent Above Target)

ExxonMobil discovered oil reserves in the Kedung Keris Field in 2011. The field is within the Cepu Block, which is in Sukoharjo Village, Bojonegoro, East Java. It is located 14 kilometres from the Banyu Urip Field, which was discovered in 2001.

Exxon’s official website says that the Kedung Keris-1 well will be drilled onshore, to a depth of 7,032 feet or 2,143 metres. This well will be a layer of oil 561 feet or 171 metres wide in the targeted carbonate zone. The Kedung Keris Field has the reserves to produce 20 million barrels of oil. (Read: SKK Migas Asked to Decide Soon on Kedung Keris PoD)

The Cepu Block is operated by ExxonMobil Cepu, which has a participating interest of 45 percent. Pertamina EP Cepu also owns a 45 percent stake in the block, while the remaining 10 percent is shared among four regional-owned enterprises: Blora Patragas Hulu, Petrogas Jatim Utama Cendana, Asri Darma Sejahtera and Sarana Patra Hulu Cepu.