Pertamina asked to reactivate closed wells

Upstream oil and gas regulator BPMigas said Friday that it expected state oil and gas firm PT Pertamina to execute its plan to reopen 5,244 suspended wells in its working areas to ramp up oil production next year, the Jakarta Post reported.

BPMigas deputy head Hardiono said that the company?s upstream business unit, Pertamina EP, is currently identifying which wells had the best potential to be reactivated. The results of the reactivation would contribute to the country?s overall oil production beginning next year, he said.

?If 30 percent of the wells can be reactivated, the company can contribute an additional of 3,600 barrels of oil per day [bpd]. We will use that to help us achieve the production target of 950,000 bpd in 2012,? he said.

He said Pertamina EP planned to reactivate around 1,000 wells this year. The reactivation of the wells is expected to require a substantial budget because the processes would involve the application of enhanced oil recovery (EOR) technologies.

According to BPMigas data, for the period spanning January to Sept. 5 this year the production of Pertamina EP was still 122,350 bpd, much lower than the government target of 132,000 bpd. The government expects the company to produce 135,000 bpd in 2012. (*)