PRODUCTION FROM THE CEPU BLOCK INCREASED BY 10,000 BOPD THROUGH THE EARLY OIL EXPANSION (EOE) PROGRAM

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Bojonegoro. Indonesia deserves to be proud. In the midst of a shortfall and difficulties to meet the national energy demand, the Cepu Block in October 2014 increased its production by 10,000 BOPD from 30,000 BOPD to 40,000 BOPD. Previously, the production had stood at 30,000 BOPD which had been obtained from the Early Production Facility (EPF) of Well Pad - A in the Banyu Urip field. Similar to the EPF program, the additional 10,000 BOPD were also obtained from a new program initiated by PT. Pertamina EP Cepu (PEPC), namely the Early Oil Expansion (EOE), that is, producing oil from Well Pad – C by using production facilities leased from a third party.

This event was revealed by the President Director of PT Pertamina EP Cepu, Amril Thaib Mandailing. He said that the EOE Proposal had been accepted by all the parties composing the Cepu Block PSC Consortium, following a tortuous process and finally leading to SKK Migas approval. The EOE program commenced in July 2014 covering activities of permits arrangement, sourcing, engineering and other actions. Despite the many hurdles, the EOE program led to a production of 10,000 BOPD on 23 October 2014.

"The EOE program was undertaken by activating 3 new oil production wells from the Banyu Urip Wellpad C namely C03, C04 and C06. Fluid from the said production wells was processed using production facility units leased from a third party with a capacity of 10,000 BOPD. Such production facilities were capable of processing well fluid to obtain oil with a quality that meets the specifications required by the buyer as stipulated in Crude Sale Agreement (CSA)", he added.

The reliability of the EOE production facilities was determined by the configuration and performance of the following process components:

  1. HP Separator
  2. H2S Stripper
  3. Oil Cooler
  4. Export Pumps
  5. Oil Tank
  1. Custody Meter
  2. HP Knock Out Drum
  3. Flare Stack (HP)
  4. Power Generator
  5. Nitrogen Generator
  1. Waste processing unit
  2. Air Compressor
  3. Chemical Injection Skid
  4. Control Room

The EOE started on 23 October 2014 with 2,000 BOPD following the signing of the Official Report on the validation of the metering system as the point of sales for the crude oil by the Directorate-general for Oil and Gas and SKK Migas on 22 October 2014. Production increased gradually, reaching 10,000 BOPD on 30 October 2014. Following is the chart showing Banyu Urip production increase using the EOE:

The production increase from the Cepu Block through the EOE as initiated by PEPC will generate raised revenue to Pertamina in excess of US$ 13.5 M per month (45% PEPC Share). This EOE program is set to last 8 – 14 months.