The Special Task Force for Upstream Oil and Gas Implementation (SKKMigas) plans to export crude oil from Banyu Urip field in Cepu, East Java - Photo by ExxonMobil

JAKARTA (TheInsiderStories) – The Special Task Force for Upstream Oil and Gas Implementation (SKKMigas) plans to export crude oil from Banyu Urip field in Cepu, East Java, said the official. The reasoned, state-owned energy holding firm, PT Pertamina, as the purchaser of ExxonMobil Cepu Ltd.’ production, was unable to absorb.

According to deputy at the agency, Arief S Handoko, in a virtual conference held today, currently, Pertamina has an excess stock due to low demand for the refineries, as an impact of the COVID-19 pandemic. Other reasoned, the producer still importing crude and fuel oil.

For background, Banyu Urip is the first development within the Cepu Block working areas, with the discovery of crude oil reserves was estimated at 450 million barrels per day (bpd). In 2019, Pertamina has agreed to purchase 650 million bpd from ExxonMobile Indonesia’ block, under a government plan to curb crude oil import.

The deal based on the Minister of Energy and Mineral Resources regulation Number 42 of 2018 concerning priority of petroleum utilization to meet the domestic needs. In the rule, the business entities hold the petroleum processing business licenses must prioritize oil supplies for the domestic needs and sell to Pertamina.

Pertamina also has agreed to purchase 137 million bpd from 37 production sharing contract operating. Now, the company has no longer imported heavy and super-heavy crude oil and only imports light and medium crude types.  The most influential domestic purchases of oil and condensate are parts of former PT Chevron Pacific Indonesia for Duri and SLC types, which amount around 3 million barrels per month.

In the first half of 2020, the oil and gas production, domestic and international assets around 884,100 barrels of oil equivalent per day (BOEPD). The producer data also showed that domestic fuel consumption has reached 114,000 kiloliters (KL) per day, which are gasoline consumption is 78,820 KL per day and diesel 34,990 KL per day.

Written by Editorial Staff, Email: theinsiderstories@gmail.com