Jakarta (ANTARA News) - BP Migas has urged ExxonMobil to immediately increase its oil production in the Banyuurip field in the Cepu Block, Bojonegoro, East Java, to 5,000 barrels a day.

The operations director of the upstream oil and gas business regulator, Rudi Rubiandini, said here on Wednesday he had given Exxon until the end of January 2012 to do it.

"We have given Exxon until the end of January to submit details of its project, equipment addition, procurement process and the cost calculation for increasing the production," he said.

ExxonMobil through its subsidiary Mobil Cepu Limited (MCL) has operated an early production facility (EPF) in the Banyuurip field with a capacity of 20,000 barrels a day.

The facility is separated from the project with a planned production peak in Cepu at 165,000 barrels a day as of 2014.

As of last year B Migas has asked MCL to increase its initial production from 5,000 to 25,000 barrels a day by functioning its three existing wells that have so far only had equipment to produce at a capacity of 20,000 barrels a day.

Based on BP Migas study technically the wells are able to flow oil up to 37,000 barrels a day.

Rudi said BP Migas would take action against the MCL officials if they would not increase the production.

"We will replace the officials responsible upon consideration that they could not cooperate with the state. The production hike is also for the interest of the country," he said.

He admitted so far Exxon still refused to increase the production.

"The only problem is because MCL would not bother and so has no slightest will to do it," he said.

Exxon meanwhile has expressed its commitment to continue to meet the energy demand of the Indonesian people.

Right now MCL is still studying to increase the production to 25,000 barrels a day with priority on safety, integrity, quality assurance.

MCL started developing the production facility in Banyuurip with a capacity of 20,000 barrels a day at the end of 2008 and started the production as of August 2009.
(T.K007/H-YH/HAJM/S012)

Editor: Priyambodo RH
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