ConocoPhillips to transfer 240 old oil wells in S. Sumatra to PetroMuba

ConocoPhillips has agreed to transfer the management and operation of about 240 old oil wells located in Musi Banyu Asin regency, South Sumatra to PT PetroMuba, a company owned by the local authority, Sriwijaya Pos reported on Friday.

Director of PT PetroMuba, Robert Heri, said in the regency?s capital, Sekayu on Thursday although ConocoPhillips agreed to transfer the old oil wells, it demands the transfer of the ownership be made trough existing legal procedures.

Robert said that he hoped PT Petro and Conoco would soon sign a memorandum of understanding on the transfer of the ownership and management of the old oil wells.

The 240 oil wells which were firstly developed during the Dutch colonial era are located in a concession area owned by Conoco?s subsidiary PT Gulf Indonesia Resources. The old oil wells which are now neglected could produce about 1,200 barrels of crude oil per day.

There are more than 900 old oil wells in the regency but the local authority could not operate them because they are located in oil concession areas of several companies. (*)