CEPU BLOCK PROVIDES NEW HOPE FOR LOCALS

By Andi Abdussalam

Jakarta, April 12 (Antara) - Indonesia's Banyu Urip oil field in the Cepu Block in East and Central Java, which saw its maiden 550,000 barrel oil lifting on Sunday, provides new hopes for the locals and the nation.          With an expected 165,000 barrels of oil production per day by the end of 2015, the Cepu Block, which will contribute 25-30 percent to the national oil output, will bring greatest positive impacts on the local people around the operation areas.          "What is important is the social impact of this project where the local people in the operation areas will be happy because the project will function as a new economic driver from the oil and gas sector," Satya Widya, the deputy chairman of Commission VII on energy affairs of the House of Representatives (DPR) said on Sunday.            The project can increase the local people's capacity who initially only have low skills. With the project, they will improve their skills, the lawmaker said.          Best oil workers can be obtained from the local areas and this will continue to provide benefit, he said after inspecting a crude lifting process from the Gagak Rimang Floating Storage and Offloading (FSO) facility.          "Oil can be depleted but skills will not and could be used in any oil exploitation field anywhere in the world," the legislator said.          The lawmaker who is a politician of the Golkar party asked ExxonMobil and state-owned oil Pertamina to continue developing the local people's potential. They should avoid exclusivity so that the benefit of the oil project could be enjoyed by all layers of the people.          In order to improve the skills of the locals, ExxonMobil Cepu Limited (EMCL) has provided Rp25 billion, or US$1.9 million, for an education development program in the surrounding area of the Banyu Urip field.          "The assistance program will provide benefits to six schools in Bojonegoro and Tuban," President of ExxonMobil Cepu Limited Jon M. Gibbs noted in a press release last month.          "We will continue to support the development of the communities in the surrounding area in which we operate," he added.          According to Gibbs, the implementation of the program will be conducted in the form of teacher training, school management, curriculum development, and training for the students.          "As many as 240 teachers will benefit from this program," he noted.          The program, which is initiated in cooperation with Putera Sampoerna Foundation, also involves the local education agencies and the citizens.          EMCL is also ready to initiate a variety of programs that will support the development of the local economy. The company has focused its community programs in three sectors: education, health, and economic development.          Therefore, legislator Satya Widya expressed hope that the the Ceput Block project would benefit the local people and become a main trigger for the development of national gas business for the benefit of the nation.          "I hope there will be the same spirit. I am convinced oil and gas industry has been accustomed to price fluctuations. But what needs to be developed is the positive social impact of the project," Satya Widya said.          President Director of state-owned oil and gas firm Pertamina Dwi Sutjipto  said the Banyu Urip oil field in the Cepu Block is the future hope of the nation. The development of the Cepu Block can trigger the continuation and completion of other oil block projects based on the guidance of the Ministry of Energy and Mineral Resources and the SKK Migas oil and gas regulator.          "What we are witnessing today is proof that ExxonMobil can become a leader together with us. We hope this will build trust on the part of the government and become example of good cooperation for the private sector," he said during the launching of the maiden oil lifting.          "This is a historic event, with this crude lifting, the nation's oil and gas supply will increase. The lifting from Banyu Urip will meet 25 to 30 percent of the national oil supply," Dwi said after officiating the maiden crude lifting function.          Energy and Mineral Resource Minister Sudirman Said officially launched the maiden lifting of oil from the Gagak Rimang Floating Storage and Offloading accommodating crude from Banyu Urip field in Cepu Block.          "The first lifting from this project is worth US$2.6 billion and this will be the biggest in Indonesia. We hope we can learn from it with regard to processing in other projects," he said at a press conference on Sunday.          Accroding to Pertamina President Director Dwi Sutjipto, up to now, the oil production of the Banyu Urip field has continued to increase reaching 80,000 barrels per day and by the end of the year it is expected to increase to 165,000 barrels per day.          "The production accounts for 25-30 percent of national oil output. We can cut import and reinforce our energy resilience. Because we still import 50 percent, this additional production will be very meaningful," he said.          In connection with the lifting, state-owned PT Pertamina EP Cepu (PECP) would ship 550,000 barrels of crude from Gagak Rimang FSO to a Pertamina refinery in Cilacap and Balongan using Mt Gunung Geulis tanker belonging to Pertamina.          The cooperation contract (KKS) for Cepu Block is the result of an agreement signed by the government and KKS contractors on September 17, 2005.          KKS contractors in Cepu Block include PEPC holding a total of 45 percent shares, ExxonMobil Cepu Limited and Ampolex Cepu Pte.Ltd 45 percent shares and a local government-owned company (BUMD) 10 percent.          ExxonMobil, through its subsidiary Mobil Cepu Limited, had operated an early production facility (EPF) in the Banyu Urip field since September 17, 2005, which is now operated by ExxonMobil Cepu Limited. ***3*** (T.A014/b003/B003) (T.A014/A/A. Abdussalam/Bustanuddin) 12-04-2015 21:38