Caltex to adopt VSIT technology at Minas oil field

Oil and gas company PT Caltex Pacific Indonesia (CPI) will soon adopt the Russian-made VSIT technology at its Minas oil field in a bid to increase production, according to company top official.

CPI president Humayun Bosha said that the decision was made following a relatively successful try-out at the Pager field.

?If I?m not mistaken the cooperation agreement will be made this month,? he told Petromindo.com.

He said that CPI was actually unsure whether the 30 percent higher production at the Pager field was attributed to the VSIT technology because the company also expanded the pipeline during the try-out.

A source at PT Wahana Petra Nusa (WPN), the sole distributor for the VSIT technology in Indonesia, said that the adoption of the Russian technology at the Minas field was expected to be able to increase production by an average of 20 percent.

The source said that CPI and WPN currently were still seeking the best formula to arrange the cooperation agreement. WPN wanted a revenue sharing arrangement. But according to the existing regulation the cooperation agreement could only be made based on service contract system.(Arry)