The infrastructure and industrial development activities have led to an energy consumption growth reaching an average of 7% in the past 10 years. Such increase already exceeded the average of the global energy demand.

PT Pertamina EP Cepu (PEPC) is an affiliate (subsidiary) of PT Pertamina (Persero) engaged in the business of upstream oil and gas activities covering exploration, exploitation and production in the Contract Area of the Cepu Block.

The Cepu Block Contract Area covers 2 (two) areas namely the Bojonegoro Regencyin the East Java Province, and the Blora Regency in the Central Java Province. The Cepu area was well-known for its large accumulation of oil and natural gas reserves since the Dutch colonial era during which oil and gas activities were conducted by the Bataafsche Petroleum Maatschappij ("BPM").


Currently the field projects being developed are the Banyu Urip full-field project estimated to produce oil up to 165 KBOPD, and the Cepu Gas Development Project covering the Unitization of the Jambaran - Tiung Biru fields and the Cendana field.

The Cepu Gas Development Project is estimated to produce 315 MMSCFD of gas for a plateau time of 16-year production period.

Banyu Urip Full Field

The Banyu Urip Field Development covers EPC (Engineering, Procurement and Construction) activities, broken down into 5 (five) EPCs, namely:

  • EPC1 : Central Processing Facilities (CPF), The scope of work covers:
    1. Wellpads construction for 49 wells
    2. Flowline from the wellpads to the CPF
    3. Sour Crude Processing & stabilization (185 kBD)
    4. Crude Storage (125 kBD) & export pump
    5. Gas Handling & Injection
    6. Produced Water Treatment
    7. Fuel Gas Treatment
    8. Power Generation
  • EPC2 : Onshore Export Pipeline, The scope of work covers:
    1. Onshore Pipeline 72 km x 20”
    2. Pipe for Horizontal Directional Drilling (HDD), 20”
    3. Insulation pipe
  • EPC3 : Offshore Export Pipeline & Mooring Tower, covering:
    1. Offshore Pipeline 23 km x 20” dia
    2. Polyurethane Foam Insulation for Flow Assurance
    3. Rigid Steel Riser
    4. Mooring Tower 33 meter water depth
    5. Piled Tower Structure
    6. 360 degree Rotating Assembly
    7. Lifting and Pigging Facilities
  • EPC4 : Floating Storage & Offloading (FSO). The scope of work of EPC4:
    1. Conversion of a 90’s Vintage VLCC (Very Large Crude Carrier) into an FSO (Floating Storage and Offloading unit) with a minimum capacity of 1.7 million barrels
    2. Offloading rate 30,000-50,000 bbl/hour
    3. Capacity to accommodate a tanker with deadweight of 50,000-300,000 dwt
    4. Crew capacity of 60-70 persons
  • EPC5 : Infrastructure Facilities, The scope of work covers:
    1. Solo River water Intake Facility
    2. Solo Riverwater Retention Basin (5.5 Mm3)
    3. Administration, Operation & Maintenance buildings
    4. Personnel Housing & Support facilities
    5. Road & utility infrastructure

Cepu Gas Development

The Cepu Gas Development Project consists of two gas fields namely the Jambaran - Tiung Biru field and the Cendana field. The Jambaran - Tiung Biru is a gas reservoir that straddles on two mining work areas namely the Cepu Contract Area and the PT Pertamina EP's Contract Area. In compliance with the Government Regulation No. 35/2004 the management of such structure requires the unitization of the Jambaran field with the Tiung Biru field for an optimum gas development.

Pursuant to the Head of Agreement ("HOA") signed on 17 August 2011 by and between the Cepu Block PSC Contractors and PEP, PEPC was designated Operator of the Unitization of the Jambaran - Tiung Biru Fields.

The highlights of the HoA were among others:

  1. The Jambaran field and the Tiung Biru field were to be unitized.
  2. PEPC was designated Operator of the Unitization
  3. The gas development was conceived to integrate the Jambaran - Tiung Biru with Cendana.

The Plan of Development for the Unitization of the Jambaran Tiung Biru (JTB) Gas Fields integrated with the Cendana Field was approved on 13 February 2013. On 28 February 2013 PEPC was designated Operator of the Unitization of Jambaran Tiung Biru Fields (JTB) by the Ministry of Energy and Mineral Resources by virtue of a Unitization Agreement ("UA") signed by and between PEPC, MCL, Ampolex, Regionally-owned Enterprises (BUMDs) and PEP.

The project activities conducted up to and including 2013 covered AMDAL, FEED procurement, technology optimization, permits and surveys related to land acquisition.


The Banyu Urip Structure Development is carried out in two stages, i.e. the Early Production stage and the Full Field Development stage. The Early Production stage uses Temporary Production Facilities which started on August 31st, 2009 and ended on January 16th, 2016. The Full Field Development stage is a production stage in full capacity in parallel with the completion of Engineering, Procurement, and Construction (EPC) stage with the commencement of Train A Central Processing Facility (CPF) Startup on December 14th, 2015 and Train B Startup on January 18th, 2016. Then on January 7th, 2017 at the Banyu Urip Field High Rate Test activity was conducted to increase production from 185 MBOPD to more than 200 MBOPD in 2016 by optimizing equipment / unit at the Central Processing Facility (CPF) supported by the Fit - for - Purpose certificate for an installation (SKPI) with a capacity of 220 MBOPD on May 12th, 2017 and by the Environmental Certification Certificate (SKKL & IL) on July 24th, 2017.

Since the issuance of SKPI and SKKL & IL the High Rate Test activity ended and operation proceeded as a normal operation activity. Cumulative production up to December 31st, 2017 reached 207.76 MMBO (93.49 MMBO of which is PEPC‘s 45% Share) with an average production in 2017 of 203,522 BOPD (91.585 BOPD of which is PEPC‘s 45% Share).