Tiung Biru and Jambaran gas fields reach FEED stage
The super major ExxonMobil and the national oil company (NOC) Pertamina have agreed to prepare the call for tender for the front end engineering and design (FEED) work to develop the Tiung Biru and Jambaran gas fields at Cepu block across Central Java and East Java Provinces in Indonesia.
In February 2013, the Indonesian regulator SKK Migas approved the program of development (POD) submitted by ExxonMobil and Pertamina to move in production the gas and condensate reserves of the Tiung Biru and Jambaran fields.
Prior to this formal approval process, ExxonMobil and Pertamina had signed in August 2011 a Heads Of Agreement (HOA) to unitize the development of the Tiung Biru and Jambaran gas fields since they were holding different working interests and operatorship roles in each field.
Tiung Biru does not belong to the Cepu Block and is 100% owned and operated by Pertamina.
Jambaran is fully part of the Cepu Block where ExxonMobil and its partners share the working interests so that:
– ExxonMobil 45% is the operator
– Pertamina 45%
– Central Java Government 10%
Despite these differences, the positions of the fields and the nature of the reservoirs, motivated ExxonMobil and Pertamina to unitize the Tiung Biru and Jambaran gas fields in order to optimize the project development and operations.
Pertamina and ExxonMobil to invest $3.3 billion in Cepu
This investment will be split between:
– $1.4 billion in capital expenditure
– $1.9 billion in operations expenditure
These amounts are justified by the size of the reserves.
Holding 600 million barrels of crude oil, the Cepu Block is well known by the Banyu Urip major discovery contributing alone for 250 million barrels.
Beside these crude oil reserves, Jambaran concentrates the natural gas reserves in the Cepu Block.
Together with Tiung Biru standing just outside the Cepu Block, the unitized fields represent recoverable reserves of:
– 1.2 trillion cubic feet (tcf) of natural gas
– 18.6 million barrels of condensate
– Condensate export pipeline
– Jetty with storage and offloading facility
While the first production has been defined around 185 million cubic feet per day (cf/d), Pertamina and ExxonMobil are expecting further discoveries, so that the Cepu gas central processing facility should have a capacity from start of:
– 300 to 350 million cubic feet per day (cf/d) of gas
– 3,000 barrels per day (b/d) of condensate
On this base, Pertamina and ExxonMobil have scheduled to award the FEED contract on third quarter 2013 in order to move into the engineering, procurement and construction (EPC) phase on second half 2014 for first shipment in 2017.