REPUBLIKA.CO.ID, BOJONEGORO -- The oil production of the Cepu block in the district of Bojonegoro, East Java Province, increased in the second quarter of this year.
Head of the regional income office Herry Sudjarwo said oil production of the Cepu block averaged 85,000 barrels per day in the second quarter of this year, almost doubling the average production of 43,000 barrels per day in the previous quarter.
Withe the increase in the production from the Cepu block, the regency had more oil ready to be sold at 7,436,196 barrels o in the second quarter of this year , up from 5,324,657 barrels in the previous quarter.
"Oil production of the Cepu Block totaled 5.4 million barrels in the second quarter of this year , up from 3 million barrels in the first quarter," Herry said.
Increase was also recorded in oil production of the Kawengan field, which is operated by Pertamina EP Asset 4 Field Cepu, Central Java.
Meanwhile, the oil production of the field operated by Geo Cepu, averaged 44,000 barrels per day in the second quarter, up from 33,000 barrels per day in the first quarter.
Similar trend was also shown by the Tiung Biru (TBR) oil field in the sub-district of Tambakrejo, with production rising to 185,000 barrels per day in the second quarter of this year from 60,000 barrels per day in the first quarter.
A decline, however, was recorded in the oil production of the Sukowati oil field , which is operated by Joint Operating Body (JOB) Pertamina-Petrochina East Java (PPEJ), down from 23,000 barrels per day to 19,000 barrels per day.
"The decline in oil production of the Sukowati field was not very significant. The increase in the Cepu block's production more than offset the decline," Herry said.
He said despite the increase in output and sales, the earning from the oil production split for the district is feared to fall short of the target of Rp974 billion for this year as a result of the shrinking price of oil.
"The problem is the oil price has declined to US$45 per barrel, falling short of the target of US$60 per barrel," he said.
He said the labor protest that resulted in stoppage of operation of the Cepu block would cause a decline in oil production and sales from the Cepu block in the third quarter.
"Fortunately, the decline in output was not very significant as the oil production of the Cepu block would continue to rise," he said.
Cepu block in the border areas between Central and East Java, is jointly operated by the state oil and gas company PT Pertamina and ExxonMobil Oil with share split of 45 percent.
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