Nama : Gloria Samantha Tikupasang

NIM : 071001800048
Tugas : Bahasa Inggris

“OIL AND GAS IN BOJONEGORO”

The history of one of the oldest oil fields in the world actually began when the Dutch
entrenched in Indonesia around 1870. After various Cepu block the transfer of power was
first explored by the oil company Royal Dutch / Shell DPM (Dordtsche Petroleum
Maatschappij) before World War II. First oil concession in this area named Panolan. Ledok-1
wells drilled in July 1893 is the first well in the area of Cepu. After being used as a place of
education Lemigas (Institute of Oil and Gas) in 1965, which included drama oilfield in East
Java Sea basin began -tepatnya after the government gave permission Technical Evaluation
Study (TES) to Humpuss Patragas in 1990. Humpuss Patragas is a company owned by
Tommy Suharto, the youngest son of former President Suharto.

In the agreement, Humpuss Patragas have permission to conduct exploration in the

old wells that have been discovered oil and new places that no oil wells. However, because of
limited funds and technology at the time, Humpuss Patragas could not digging deeper, so
taken were oils were in a shallow layer. Pictured get an abundance of oil, Humpuss finally
took Ampolex, oil exploration company from Australia to cooperate -with the agreement
Ampolex get 49 percent and Humpuss still be the operator of Cepu Block.

Drilling is not as well done as on the road, Mobil Oil acquired Ampolex, so that the
pending acquisition of drilling completed in 1996 stopped. The drama continued when
Humpuss sell its entire stake to Mobil Oil when the financial crisis hit in 1998.

After the failure of the then ExxonMobil Cepu buy exploration rights, then using a
high-resolution 3-D seismic perform for mapping subsurface. Shocking news came when in
February 2001 Mobil Cepu Ltd -a subsidiary company of ExxonMobil in cooperation with
Pertamina find the source of crude oil with a content of 1.478 billion barrels and gas reached
8.14 billion cubic feet at the Banyu Urip field. This is the most significant discovery of oil
resources in the past decade.

Shortly problem then arises. ExxonMobil and Pertamina involved in negotiating a

long and long for the division and workmanship. In 2006 finally elected president Susilo
Bambang Yudhoyono to fire the board of directors appointed Pertamina and ExxonMobil as
the main operator. A contract management agreement Cepu for 30 years was made and
signed. The composition of investment is respectively 45 percent for ExxonMobil and
Pertamina and 10 percent to local governments, comprising 4.48 percent of Bojonegoro,
Blora 2.18 percent, 2.24 percent and 1.09 percent of East Java, Central Java.

Exxon itself was formed in 1800 under the name Exxon Company International
(ECI). Data from Fortune magazine in 1993, Exxon was ranked first major oil companies
with sales of 132 774 million US dollars, profit 4777 million US dollars, and assets 85 030
million US dollars. While Mobil Corporation is in the fourth level with sales of 57 215
million dollars, 862 million US dollars profit, and assets 40 561 million US dollars. On 30
November 1999, Exxon Mobil Corporation officially joined the Corporation became
ExxonMobil Corporation.
 ExxonMobil produces 4 to 4.5 million barrels of oil and gas per day, the resulting oil
fields in 24 countries. To discover ExxonMobil has conducted in 48 countries and sells oil
and gas in 25 countries. ExxonMobil on development division has 32 projects in 15 countries
that need funding 33 billion US dollars for the construction of the whole project.

On the other hand, Exxon is also accused of a research group of the Council on
Economic Priorities as a firm number on the causes of pollution throughout 1994. So is the
case of the giant oil spill from the tanker Exxon Valdez in Prince William Sound, west coast
of the US, in March 1989 that left more from 11 million gallons (41 million liters) of oil
polluting the waters and the environment in the gulf of Alaska.

Spacious working area Cepu overall is 919.19 square kilometers -with the calculation
of 624.64 square km in Bojonegoro, 255.60 square km in Blora and 38.95 square km in
Tuban. ExxonMobil ensure Cepu could produce 170,000 barrels of crude oil per day, and
pays $ 4 million per day to the government, assuming a crude oil price of 35 dollars per
barrel.

Total oil reserves in Cepu by consultants from the United States reached 2 billion
barrels. Note 25 percent of the natural resources that can not be renewed in the form of oil
extracted from the Earth Indonesia are oils that are in the shallow layers, one of which is
named Cepu field is carried deeper drilling.
(sumber : https://id.wikipedia.org/wiki/Blok_Cepu )

Question :
1) What is the first oil well in Cepu?
2) When are oil fields in Indonesia known?
3) What is the Humpuss Patragas?
4) How was the series of events so that Humpuss Patragas sold all of it’s Shares to Mobil
Oil?
5) What happened at February 2001 by Mobil Cepu ltd?
6) How wuch oil reserves in Cepu?