Basic Solusi to acquire, manage 10 oil wells in C. Java

By Ruli Setiawan

Philippines-based firm Basic Energy Corporation and Petrosolve Sdn Bhd of Malaysia (Petrosolve) had arrived at an agreement for PT Basic Energi Solusi to acquire from Petrosolve the rights to manage ten identified oil wells in Central Java.

Presently, oil in the area is produced by small groups of miners, using a combination of manual and mechanized systems to reach variable depths ranging from 80 to 300 meters, Basic Energy said in a statement obtained Wednesday.

PT Basic Energi Solusi, which is the foreign investment company incorporated by the parties' joint venture company in Jakarta, is being supported by the exploration experience of Basic Energy Corporation and the chemical technology of Petrosolve for increased oil production, the statement said.

It shall undertake certain aspects of the management and operation of, initially, two oil wells in the area, it added.

Basic Energi Solusi shall implement a development plan aimed at rehabilitating old or abandoned oil wells for possible limited production. It has commenced mobilization of the necessary manpower resources and logistics in the areas involved to oversee the drilling operations soon to be undertaken.

Editing by Reiner Simanjuntak