T

he Banyu Urip field at Cepu block in East Java has made progress in efforts to boost its oil output, helping the country move closer to its national production target.

The field has ramped up its production to more than 75,000 barrel of oil equivalent per day (bopd), according to Erwin Maryoto, the vice president of public and government affairs at ExxonMobil Indonesia. The field is currently operated by ExxonMobil Cepu Ltd.

'€œIn March 2015, we safely increased daily production at the Banyu Urip field by more than 35,000 bopd,'€ Erwin said on Wednesday.

Banyu Urip has contributed around 30,000 bopd since 2009. An extra 10,000 bopd has also been delivered since late last year.

The additional production comes on stream along with imminent full completion of expansion projects in the field. There are currently five major projects being developed at Banyu Urip, consisting of central processing facilities, an onshore pipeline, an offshore pipeline and mooring tower, a floating storage and off-loading (FSO) vessel, as well as supporting infrastructure.

'€œThe project is currently at more than 96 percent completion,'€ Erwin said.

All projects are scheduled to be fully completed by June this year, according to the Upstream Oil and Regulatory Task Force (SKKMigas).

The field was initially designed to reach a peak production level of 165,000 bopd early in the fourth quarter of this year. However, the Energy and Mineral Resources Ministry and SKKMigas said late last month that the field would reach an output level of 205,000 bopd this year as a temporary production facility operating since 2009 would be maintained.

The ramping up of production at Banyu Urip will be the backbone of national oil production this year amid ongoing declines in other fields in the country as a consequence of depleted resources and ongoing pressures from plunging prices that halted contractors'€™ activities.

The 75,000 bopd output from Banyu Urip has pushed up the country'€™s national total output to around 800,000 bopd, according to SKKMigas deputy of operations Muliawan. However, he said, as the additional output was delivered only recently, the national daily average production during January to March period of the year remained low at around 766,000 bopd.

Under the state budget this year, national oil production is targeted to reach 825,000 bopd. The country has frequently failed to meet its oil production target set in the state budget as its oil fields have become depleted due to exploitation while exploration works to find new reserves and resources have been hampered by various issues, including red tape.

Several contractors and Pertamina have also started reducing activities amid a decline in oil prices. Many contractors are falling short of cash and have been forced to recalculate investment and activities. SKKMigas is currently working with the contractors to revise contracts and budgets.