An MCL spokesman Rexy Mawardijaya said here on Saturday the production would be increased by optimizing production from four wells with two injection wells.
The plan, however, is still being studied as the condition has to be safe before boosting production, Rexy said.
"The study is needed to ensure that the condition of the wells remain stable after production is increased," he added.
He said part or 6,000 barrels of daily crude oil production from the Banyuurip field in the village of Mojodelik, sub-district of Ngasem, is used to feed a mini oil refinery operated by Tri Wahana Universal (TWU).
The rest is channeled through a pipeline to the Mudi field in the village of Rahayu, sub-district of Soko in Tuban, and from which it is distributed to the storage place in the sea off Tuban. he said.
"The plan is the B and C fields will have 16 production wells each. At present drilling has started using mobile rigs," Rexy said.
Deputy Development Manager of MCL Elviera Putri said the government has set a target for the company to complete the first up the fifth phases of engineering, procurement and constructions (EPL) project in August 2014.
Earlier, head of the Working Unit of the Upstream Oil and Gas Regulator (SKK Migas) Rudi Rubiandini asked MCL and the contractors of the "EPC" I, II, III, IV and V to meet their working commitment in line with their contracts.
"We ask MCL to bring to reality the plan that Cepu Block would begin to operate fully with peak production at 165,000 barrels per day in August 2014," Rudi said.
The Cepu block, after it operates at full capacity is expected to reverse the declining trend of the country`s oil production.
The country`s crude oil production has been on the decline over the past several years resulting in the country becoming big net imports of oil.
Currently the oil production of the country` formerly a major oil exporters and a member of OPEC, has dropped to less than 900,000 barrels per day as against consumption of around 1.3 million barrels.
Meanwhile, the Bojonegoro Regent Suyoto has threatened to cancel the operation license of MCL in Bojonegoro for delay in settling the compensation of land village used by the company in that area .
Both Elviera and Rexy said the company responded positively to the demand of the Bojonegoro regent that work in the C field be stopped over failure to settle the compensation.
"We will soon wrap up the process without breaking the regulation," Rexy said.
(H-ASG/F001)
Editor: Jafar M Sidik
Copyright © ANTARA 2013
