Banyu Urip Full Field Development, Cepu Block, East Java, Indonesia



The Banyu Urip oilfield located within the Cepu Block in Bojonegoro, East Java, Indonesia, is estimated to hold more than 445 million barrels of oil within the Oligo-Miocene carbonate and Middle-Miocene clastic reservoirs.


The field was discovered in April 2001 and was appraised by drilling six wells. The project development plan was approved by the Minister of Energy and Mineral Resources in July 2006.


Initial production of limited quantities started in the field in December 2008 and the early production facility (EPF), with a production capacity of 20,000 barrels per day (bpd), was commissioned in August 2009.


Construction activities for the Banyu Urip Full Field Development started in December 2011. As of August 2014, the project is 90% complete and peak production of 165,000 barrels of oil per day (bpd) from the field is expected in early 2015. The oilfield is estimated to account for around 20% of Indonesia's overall oil production, upon completion of development. The field currently produces at a rate of 30,000bpd.


The overall investment in the project has reached $ 2.52bn, of which $2.18bn has been spent for the construction of production facilities and $337m for well drilling activities.


Project owners

A 30-year production sharing contract for the Cepu Block was signed in September 2005, between Exxon Mobil, PT Pertamina (Persero) and the Government of Indonesia. Mobil Cepu (MCL), a subsidiary of Exxon Mobil, operates the field while also holding a 45% interest. Other development partners include Pertamina EP Cepu, a subsidiary of PT Peryamina holding 45% interest, and Badan Kerja Sama Blok Cepu (BKS) holding 10% interest.


Banyu Urip Full Field Development details

The oilfield is being developed under five separate engineering, procurement and construction (EPC) contracts. The treated oil will be transported through a pipeline to the coast at Tuban and further through a subsea pipeline to a floating storage and offloading (FSO) vessel, where tankers will transport the oil to domestic and international markets.


EPC 1 involves the installation of the central processing facility (CPF) including three wellpads for the drilling of 49 wells (33 production wells and 16 injection wells), and a flowline from the wellpads to the CPF.


It will further involve the installation of a sour crude processing and stabilisation system with a capacity of 185,000 barrels per day, crude storage facility with 125,000 barrels per day storage capacity, an export pump, gas handling and injection systems, a produced water treatment facility, a fuel gas treatment plant and a power generation plant.


EPC 2 entails the installation of an onshore insulated pipeline, measuring 72km long and 20in in diameter, from the CPF to the Tuban shoreline.


EPC 3 primarily involves the installation of a 2,600t mooring tower at a water depth of 33m and laying of a 23km long and 20in diameter offshore export pipeline integrating polyurethane foam insulation from the Tuban shoreline to the mooring tower.


EPC 4 involved in the conversion of the MT Chios very large crude carrier (VLCC) into a floating storage and offloading (FSO) vessel.


The FSO was renamed Gagak Rimang in August 2014 and is 327m long and 58m wide.


Gagak Rimang has a minimum storage capacity of 1.7 million barrels, offloading rate of 30,000 to 50,000 barrels per hour, with a capacity to accommodate a tanker with a deadweight measuring between 50,000dwt to 300,000dwt. The FSO can accommodate 60 to 70 crew members.


EPC 5 involves the construction of infrastructure facilities comprised of a river water intake facility, a 5.5 million cubic metre riverwater retention basin, administration, operation and maintenance buildings, personnel housing and support facilities, and road and utility infrastructure.


Water injection wells will increase the production from the field by maintaining pressure in the reservoir and convey the oil to the producing wells. The required injection water will be sourced from the Bengawan Solo River. Natural gas produced along with the crude oil will be used for power generation at the CPF.


Contractors involved

The main contractor for the EPF was Exterran. Technical support services were provided by Kentz and the foundation works for the facilities were carried out by Excel Engineering.


The $746.3m EPC 1 contract was awarded to Tripatra Engineers & Construction and Samsung Engineering and the EPC 2 contract was awarded to PT. Inti Karya Persada Tehnik (IKPT) and PT. Kelsri.


The EPC 3 contract was awarded to PT. Rekayasa Industri and Likpin, while Scorpa Pranedya and Sembcorp Marine's subsidiary Sembawang Shipyard were awarded the EPC 4 contract. The EPC 5 contract was awarded to PT. Rekayasa Industri (Rekind) and PT. Hutama Karya.


The towage of the FSO from the shipyard to the offshore site was performed by Posh Terasea. Two dehumidifier containers for the FSO were designed and supplied by Compass Energy. Approximately 450 national and local sub-contractors are involved in the project.


The contract to design and procure a tower yoke mooring system for the project was awarded to Sofec.

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