Bojonegoro (Antara) - Mobil Cepu Limited (MCL), the operator of the Cepu oil and gas block in the regency of Bojonegoro, East Java, said development of the block has been more than 90 percent completed. "Engineering , procurement and construction (EPL) works have been almost completed," Public Government Affairs officer of MCL Rexy Mawardijaya, said here on Tuesday. Rexy said among the remaining parts of the job not yet finished is a flyover to be built over the rail track in the sub-district of Purwosari. Construction of the flyover has yet to be approved by the state railway company PT Kereta Api Indonesia, he said. "However, the contractor is set to finish the project as scheduled . There is no work to be rescheduled," he added. Currently the oil production from the block's Banyu Urip field in the village of Mojodelik, sub-district of Ngasem, averages 29,000 barrels of crude oil per day, he said. "The daily output will be increased by phases to 165,000 barrels when it is fully operational in 2015," he said. He refused to give details about request by the contractor PT Tripatra-Samsung Jakarta for additional budget of Rp1.8 trillion. "Yet it is all set in an agreement clause," he said. Earlier, head of the Cepu Block Banyu Urip Project Acceleration Yulius Wiratno, said he had information that PT Tripatra-Samsung Jakarta requested for additional budget of Rp1.8 trillion for additional work in the project. Yulius said the Upstream Oil and Gas Regulator (SKK Migas) would study the request to see the feasibility if the MCL agreed. "If there is additional budget, then there must be additional work. On the contrary, there must be a cut in budget if there is less job to do," The government has encouraged acceleration of the completion of the project that would contribute considerably to the country's crude oil production. The country, once a member of the Organization of Petroleum Exporting Counties (OPEC) has become a net importer of oil. The country needs growing supply of oil while production tends to shrink from year to year necessitating growing imports. Growing oil imports has been a major contributor to the deficit in the country's trade balance and balance of payment. (*)

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Editor : Tunggul Susilo


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