Cepu Block Squeezed by Conflict of Interest
The development of oil and gas production in the Cepu Block, Bojonegoro, East Java, is still hampered. ExxonMobil Indonesia, as the operator of the block, has not yet received the recommendation for approval of the Environmental Impact Analysis (Amdal). The recommendation from the Bojonegoro Regency Government is a requirement for the operator to expand Cepu Block oil production, from 220 thousand barrels of oil per day (BOPD) to 235 thousand BOPD.
Based on information obtained by Katadata, the issuance of Amdal recommendations was hindered by the requirements submitted by the Bojonegoro regional government. Reportedly, the Bojonegoro government requested a gas supply of up to 30 million standard cubic feet per day (MMSCFD) from the Jambaran-Tiung Biru field. As a result, the Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) asked Exxon to hold the expansion.