700th Shipment, Pertamina's Subsidiaries Synergize to Transports Cepu Block Crude Oil Production

Source Press Release
Company PertaminaExxonMobil 
Tags Production/Development, Discovery, Strategy - Upstream, Upstream Activities
Date June 09, 2021

The 700th shipment of Cepu Block crude oil production demonstrates synergy in operation for PT Pertamina (Persero) subsidiaries.

Cepu Block crude oil in Bojonegoro produced by the PSC consortium, namely PT Pertamina EP Cepu (PEPC) and  ExxonMobil Cepu Limited (EMCL), is transported through a 95-kilometer pipeline to Palang, Tuban, and stored at the Gagak Rimang FSO off the coast of Tuban, East Java. Furthermore, crude oil is sent by VLCC Success Enterprise (MT SC Enterprise), operated by  Pertamina International Shipping to STS Tuban. Later, processed at  Pertamina's refinery that will meet national energy needs.

VLCC MT SC Enterprise will transport 1 million barrels of crude oil. It includes the Government's share of cargo (850 thousand barrels) and BKS PI (150 thousand barrels).

The achievement of the 700th lifting of the Cepu Block is cumulatively more than 475 million barrels of oil, or higher than the estimated total volume of oil reserves produced during the initial Plan of Development (PoD) plan of 450 million barrels.

The 700th shipment was attended by Minister of Energy and Mineral Resources Arifin Tasrif, Director General of Oil and Gas Tutuka Ariadji, Head of SKK Migas Dwi Sucipto, and President Director of  Pertamina Nicke Widyawati, in Surabaya, East Java, Wednesday (9/6).

Minister of Energy and Mineral Resources Arifin Tasrif expressed his appreciation for the achievements made in the Cepu Block so that the 700th shipment could be made. According to Arifin, this is an extraordinary achievement that can be done with hard work, successful work, and mobilizing all the technical capabilities possessed.

"I believe with the capabilities and cooperation of the existing technical team, and with the synergy of all, we can have good achievements. It is hoped that this collaboration will continue, and the Government will always support efforts to optimize oil and gas production in Indonesia," said Arifin.

Head of SKK Migas, Dwi Soetjipto, conveyed that the potential in the Cepu Block in the future is large enough that production capacity can be added after it was onstream one year ago, from 10,000 BOEPD to 11,000 BOEPD. According to him, in the Cepu Block, it is estimated that there will be a potential discovery of 40 million barrels of oil, so a drilling test is planned. From the gas aspect, there is also an opportunity for gas monetization of 100 MMSCFD."

These are potential in the Cepu Block, which is expected to be optimally utilized by the Exxon Consortium and  Pertamina in the future," said Dwi.

President Director of Pertamina, Nicke Widyawati, said the 700th shipment proved as technically extraordinary because the results were more than twice as planned."

With synergy, we can optimize production. The 700th crude oil shipment will be transported by a ship operated by Pertamina International Shipping, which will then be processed at  Pertamina's refineries," said Nicke.

Given the high risk of lifting jobs, Nicke urged Pertamina's employees to maintain their enthusiasm while focusing on and prioritizing the aspects of Health, Security, and Environmental Safety (HSSE) in their everyday activities. Therefore, lifting operations are safe and smooth.

"Given the production level, which is predicted to remain stable at 200 MBOPD, we hope that the good and strong cooperation that has been established so far will be maintained and even increased in the future. Therefore, it can support national energy security," added Nicke.

President of ExxonMobil Indonesia, Irtiza Sayyed, said with supports from the Ministry of Energy and Mineral Resources,  SKK Migas, Regional Governments, Engineers, PT Pertamina, BKS PI, and ExxonMobil help support the 700th shipment of crude oil from the Cepu Block."

There are various operational challenges that we face, and there are also restrictions related to the Covid-19 health protocol, but we can produce optimally without any work accidents," said Irtiza.

Source: EvaluateEnergy® ©2021 EvaluateEnergy Ltd