Most of Medco's oil wells in Tarakan no longer productive

PT Medco E & P has at least 1,200 oil wells in its concession area in Tarakan, East Kalimantan, but only 88 of the wells are still productive, Kaltim Post reported on Wednesday.

The company's chief superintendent Tony Mathindas said in Tarakan on Tuesday that at least 1,112 oil wells in the Tarakan concession area had been damaged and could no longer be operated.

"Many of the wells could no longer be identified," he said in a hearing with the members of the Tarakan legislative council. He said that the company and the government were still discussing the possibility of closing the unproductive wells.

He said that it will cost about US$10,000 to close each well. "All of the funds needed to close the wells will be provided by the government. After the closure, the area will be returned to the government," he added. (*)