ExxonMobil, Pertamina Move Forward with Banyu Urip Full Field Development
Contract Awarded for Production Processing Facilities in Indonesia
Four other major contracts expected before year-end
Facilities planned to produce 165,000 barrels per day
Exxon Mobil Corporation (NYSE:XOM) said today that the development of
the Indonesian Banyu Urip field in the Cepu block in East Java has
achieved a major milestone with the award of the first of five
engineering, procurement and construction contracts for work on major
facilities at the development.
ExxonMobil′s Mobil Cepu Ltd. (MCL) is operator of the Cepu block with 45
percent interest. The other co-venturers are Pertamina with 45 percent
interest and four local government companies holding the remaining 10
percent interest.
'This is a major milestone in the development of the Banyu Urip field,?
said Neil Duffin, president of ExxonMobil Development Company. 'Based on
appraisal drilling, we′ve increased estimates of the recoverable
resource under full development to 450 million barrels. This
multibillion dollar project continues to benefit from the strengths of
both Pertamina and ExxonMobil and provides the foundation for a strong
partnership between the two companies, as well as with the local
government companies.?
Full field development is planned to produce 165,000 barrels of oil per
day from facilities that include 49 wells on three well pads, a central
processing facility, and a 60 mile (95 kilometer) pipeline to transfer
the processed oil to a 1.7 million barrel floating storage and
offloading (FSO) unit in the Java Sea. Tankers will load crude oil from
the FSO for transport to domestic and world markets.
Construction is targeted to be completed in 36 months and the start-up
of full field production is expected afterwards, pending regulatory
approvals.
Early oil production on the Banyu Urip development commenced in 2009
from facilities with demonstrated capacity of greater than 20,000
barrels per day. Duffin said, 'The excellent performance of the early
production wells and facilities adds economic value to the overall
project and is supportive of the Government of Indonesia's priorities to
safely and effectively develop the Cepu Block oil and gas resources.?
Affiliates and predecessor companies of ExxonMobil have operated in
Indonesia for more than 100 years. ExxonMobil is actively working on
exploration and development opportunities to increase its participation
in Indonesia′s oil and gas industry. The company supports long-term and
sustainable community initiatives around its areas of operation.
ExxonMobil′s investment in Indonesia since 1968 is more than US$19
billion (190 trillion rupiahs).
CAUTIONARY STATEMENT: Statements in this release regarding future events
and conditions are forward-looking statements. Actual future results,
including project plans and schedules and resource recoveries, could
differ materially due to changes in long-term oil and gas price levels
or other market conditions affecting the oil and gas industry; political
or regulatory developments; timely completion of development plans;
reservoir performance; technical or operating factors; the outcome of
commercial negotiations; and other factors discussed under the heading
'Factors Affecting Future Results' posted in the 'Investors' section of
our website (www.exxonmobil.com).
ExxonMobil
Upstream Media Relations, 713-656-4376
