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ExxonMobil kicks off oil production at new field in Cepu Block
ExxonMobil Cepu Limited, part of Texas-based oil giant ExxonMobil, has begun production at its Kedung Keris oil field in the Cepu Block, East Java, eight years after discovering the field.
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The logo of the Upstream Oil and Gas Regulatory Special Task Force (SKKMigas) is displayed on a building. ExxonMobil Cepu Limited officially kicked off production at its Kedung Keris oil field, part of the Cepu Block in East Java, on Tuesday. (Antara/File)
ExxonMobil Cepu Limited, part of Texas-based oil giant ExxonMobil, has begun production at its Kedung Keris oil field in the Cepu Block, East Java, eight years after discovering the field.
Kedung Keris, which holds an estimated 20 million barrels in oil reserves, has the capacity to produce 5,000 barrels of oil per day (bopd), the company said.
“This production rate is expected to help sustain the average production of the Cepu Block, which is currently producing more than 25 percent of national oil production,” said ExxonMobil Cepu president Louise McKenzie during an event to mark the commercial production of the new oil field on Tuesday.
According to Upstream Oil and Gas Regulatory Taskforce (SKK Migas) data, ExxonMobil Cepu was Indonesia’s largest oil producer in this year’s first half with output of 216,000 bopd during the period.
To maintain production rates, ExxonMobil invested US$76 million and two years to develop the Kedung Keris field. The investment was, among other activities, for drilling a well and installing a 15-kilometer underground oil pipe running from the Kedung Keris field to the neighboring Banyu Urip field, where the company runs an oil processing facility.
Going forward, the company plans to increase the production of the Kedung field to 10,000 bopd once the Environment and Forestry Ministry concludes the Environmental Impact Analysis (Amdal) that allows higher production rates within the block.
Due to environmental concerns, the ministry limits oil production at the Cepu Block to 220,000 bopd, all of which had been coming from the Banyu Urip field.
