Oil Production from Cepu Block Could Be Increased To 205,000 Bpd

KATADATA ? According to new estimates released by the government, oil production from the Cepu Block could be increased to 205,000 barrels per day (bpd), which has spurred optimism that it can meet its oil output target of 825,000 barrels per day (bpd) this year.

?It?s true that according to the Plan of Oil Development, the production was estimated to average at 165,000 bpd in (POD) but after some researches we see opportunity to increase it to 205,000 bpd,? said the Head of the Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) Amien Sunaryadi at his office in Jakarta, on Thursday (3/26). 

Amien said that the projection is based on the increase in productivity in the Banyu Urip Field. Oil production will peak in November and December 2015, and  it will remain stable at the level of 165,000 bpd  for 24 months from January 2016.

Amien also said the Banyu Urip Field will commence its production in April 2015. Its oil production is estimated to reach 600,000 barrels or 20,000 bpd during that month.

According to the Minister of Energy and Mineral Resources (EMR) Sudirman Said, the field will begin production after the Minister of Forestry and Environment Siti Nurbaya issued a permit on flare gas use.

Flare system is common in oil and gas industry. It is used to burn off unwanted waste gas byproducts or flammable gases released from the system. But this has led to the increase in the CO (carbon monoxide), SOx and NOx emissions that is causing global warming.

That?s why we need to reduce flaring and start using the flare gas. The issuance of flare gas use permit will provide certainty and warrant its production. According to Sudirman, when the block has reached its production peak, it will contribute 20 percent of the output target of 825,000 bpd.

?We are optimistic to meet the target in Cepu. We have talked to the Forestry (and Environment) Ministry to obtain a permit on flare gas use,? he said.

According to the Special Task Force for Upstream Oil and Gas Business Activities, oil output from early January 2015 until now is averaged  at 764,000 bpd. This is below the target set in the Revised 2015 State Budget of 825,000 bpd.