U.S. oil giant ExxonMobil Corporation XOM will now witness increased yield at the Banyu Urip field in Indonesia as its onshore central processing facility has successfully come online.
The commissioning of the central processing facility will augment production to over 130,000 barrels of oil per day in the coming months. On achieving full-field production, Banyu Urip will account for about 20% of Indonesia’s 2016 oil production.
Over its lifetime, Banyu Urip is estimated to produce 450 million barrels of oil. The project comprises 45 wells generating oil from three well pads, an onshore central processing facility as well as a 60 mile onshore and offshore pipeline. A floating storage and offloading vessel, and tanker loading facilities in the Java Sea are also part of the project. ExxonMobil, along with its partners PT. Pertamina EP Cepu and the Cepu Block Cooperation Body, brought Banyu Urip online in late 2008. With additional facilities commissioned in 2014 and 2015, output has increased from the starting level.
Five Indonesia-led contractor consortiums in charge of engineering, procurement and construction have successfully developed Banyu Urip. At the peak levels of work, over 17,000 Indonesian workers were employed on the project. This represented 95% of the project’s total workforce. More than 460 Indonesian subcontractors worked on the project as well.
ExxonMobil, the operator of Banyu Urip, holds an interest of 45%, while PT. Pertamina EP Cepu holds another 45%. The remaining 10% is held by four local government entities under the Cepu Block Cooperation Body, namely PT. Blora Patra Hulu, PT. Petrogas Jatim Utama Cendana, PT. Asri Darma Sejahtera, and PT. Sarana Patra Hulu Cepu.
In 2015, ExxonMobil aims to boost its global production volumes to 4.1 million oil-equivalent barrels per day. Ramp up of projects completed in 2014 and the commissioning of major developments in 2015 will drive growth.
Currently, ExxonMobil carries a Zacks Rank #3 (Hold). Some better-ranked players from the energy sector are Energy Transfer Equity, L.P. ETE, ReneSola Ltd. SOL and Boardwalk Pipeline Partners, LP BWP. Each of these stocks sports a Zacks Rank #1 (Strong Buy).
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