SKK Migas to Export Oil From Banyu Urip Field

By Editorial Team 30/10/2020
Summary

To avoid reductions or production curtailments, the Upstream Oil and Gas Special Regulatory Task Force (SKK Migas) plans to export crude oil produced by the Banyu Urip Field, Cepu Block, East Java. Deputy for Operations of SKK Migas Julius Wiratno said that the plan to export the government's share of oil from the oil and gas field managed by ExxonMobil Cepu Limited is very urgent. This is because PT Pertamina is no longer able to absorb oil from Banyu Urip because all the storage tanks are full.

If there is no export, starting November 6, 2020, there will be a production cut in the Banyu Urip Field. "So, this is indeed an emergency condition, if there is no more storage, we have to reduce production, and as a result, the oil lifting target (Cepu Block) will not be achieved," Julius said.

Pertamina’s Vice President Corporate Communication, Fajriyah Usman, said that the decline in demand for fuel (BBM) during the COVID-19 pandemic had an impact on domestic oil absorption, including from the Banyu Urip Field. In general, oil absorption by Pertamina refineries has decreased by 20 percent from normal conditions. "Export is an option that can be taken, especially crude oil of the government’s share," he said.

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