ExxonMobil Increases Investment in Indonesia's Cepu Block

According to news from Energy Voice on December 30, 2021, the US oil giant Exxon Mobil plans to increase its investment by US$170 million in the Cepu block in Indonesia.

The investment is expected to increase oil production by 20,000 barrels per day. According to local media reports, Tutuka Ariadji, Oil and Gas Director of the Energy and Mineral Resources (ESDM) Department, said that ExxonMobil and its partners reached an agreement with upstream regulator SKK Migas, which will increase investment by more than $170 million.

In September, Exxon Mobil stated that the company plans to restart exploration and drilling in the Cepu block in Indonesia, despite rumors that the company intends to give up its interest in the block in order to find new reserves. Cepu, which has one of the largest oil development projects in Southeast Asia, the Banyu Urip project, is also the largest oil production block in Indonesia.

SKK Migas stated in October that the total output of the Cepu block reached 500 million barrels of oil, exceeding the 450 million barrels target in the original development plan (PoD). The Cepu block was launched in 2016 and is the largest oil production area in Indonesia.

SKK Migas said that according to recent technical studies, the reserves of the Banyu Urip oil field have increased to 940 million barrels, more than double the original estimate of 450 million barrels.