President SBY Inaugurates Production Facilities of Banyu Urip Oil Field in Cepu

President SBY Inaugurates Production Facilities of Banyu Urip Oil Field in Cepu

After attending the celebration of Indonesian National Military’s (TNI’s) 69th anniversary in the Command Quarters of the Eastern Region Fleet (Armatim) on Tuesday afternoon (7/10), President Susilo Bambang Yudhoyono (SBY) together with First Lady Madam Ani Yudhoyono, in the end of their visit to East Java, inaugurated the production facilities of Banyu Urip Oil Field, in Cepu Block, Bojonegoro, East Java.

Presently, Banyu Urip Oil Field’s production reaches 40 thousand barrels of oil per day and is expected to reach its peak production of 165 thousand barrels of oil per day from July 2015. This oil field will contribute the average production of 119 thousand barrels of oil per day throughout 2015.

In his remarks, President SBY stated that in the last few years, Indonesia already becomes the net oil importer, while it was once the net oil exporter. For that reason, President SBY said, the Government decided to resign from the Organization of the Petroleum Exporting Countries (OPEC) a few years ago, because Indonesia’s oil sources have declined significantly in production and thus, Indonesia’s membership in the organization was not relevant anymore.

Therefore, President SBY wants us to make the best of the oil exploration and oil production in the remaining oil sites, either onshore or offshore ones. “In this way, briefly, we want to increase our oil production capacity which presently still reaches only 40 thousand barrels of oil per day. Insyaa Allaah (if Allah wills it), in the short time to come, we can increase Banyu Urip oil field’s maximum production in Block Cepu to 165 thousand barrels of oil per day,” he stated.

President SBY reminded everyone that we can achieve the target we are aiming for, only with strong commitment, hard work, synchronization, and good coordination between all relevant institutions and companies like the Ministry of Energy and Mineral Resources, Pertamina (Indonesia’s state-owned oil company), the Upstream Oil and Gas Regulatory Special Task Force’s (SKK Migas), Mobile Oil, Regional Governments of Central Java and East Java, and local residents.

Before signing the plaque which marks the inauguration of Banyu Biru oil production field, President SBY advised everyone to keep the joint strong commitment to be the part of solution.

“Let’s remove all the obstacles. Should any problem arise, solve it in a good manner. Don’t hinder each other, don’t obstruct each other, so that we won’t suffer losses for years,” President SBY stated and mentioned that our oil production should’ve increased. But due to some problems which are actually soluble, our oil production remains stagnant.

In the inauguration ceremony, President SBY was accompanied by, among others, Coordinating Minister of Economic Affairs Chairul Tanjung, Coordinating Minister of Political, Legal, and Security Affairs Djoko Suyanto, Cabinet Secretary Dipo Alam, and East Java Governor Soekarwo. (PS/Humas Setkab/Ira/ES)