TEMPO.CO, Jakarta - President Susilo Bambang Yudhoyono inaugurated the Banyu Urip Field Production Facilities in Cepu Block, yesterday. The launch was marked with the signing of an inscription by Yudhoyono in Surabaya, after attending the TNI's 69th anniversary.

Johannes Widjonarko, Acting Chief of the Upstream Oil and Gas Special Task Force (SKK Migas), said production increase is needed to achieve oil and gas output target nationwide.

"All parties must fully support the project so that it goes according to plan," Widjonarko said yesterday.

Jon M. Gibbs, president of Mobil Cepu Ltd., said the Banyu Urip project involves 450 local companies and subcontractors, 85 percent of which come from Bojonegoro and Tuban. "There are more than 10,000 Indonesian workers involved, with 60 percent of them coming from Bojonegoro and Tuban," Jon said yesterday.

The Cepu Block cooperation contract was signed on September 17, 2005, appointing MCL as operator. MCL, a subsidiary of Exxon Mobil Corporation, holds a 45-percent participating interest. PT Pertamina EP Cepu also has 45 percent stake, while the Cepu Cooperation Agency PI has 10 percent.

BERNADETTE CHRISTINA MUNTHE