BPMIGAS mulls offering aging wells, fields to oil majors

By Godang Sitompul

Upstream authority BPMIGAS has asked oil and gas production sharing contractors (PSCs) to look for oil and gas block potentials in western Indonesia, in particular matured wells. Over the past few years, major oil companies have been focusing on seeking potentials in eastern Indonesia.

?Western part of Indonesia should not be ignored, in particular matured wells or fields. We could offer matured wells to major PSCs such as BP Indonesia or Total Indonesie,? Deputy for Operation of BPMIGAS Rudi Rubiandini told Petromindo.com.

He said so far Pertamina has been tasked by the government to focus on developing matured wells. He said Pertamina may have limited capital to develop those matured fields or wells given that developing them sometimes required more advanced technology and thus larger capital, for instance by having to apply enhanced oil recovery (EOR) technology.

Rudi said BPMIGAS is considering to offer those matured wells or fields to major oil and gas companies through regular tender.

He said those matured fields could be tendered along with new blocks. Local government owned companies (BUMDs) could hold participating interest in developing those matured fields.

Editing by Roffie Kurniawan