Pertamina, cooperative sign deal to exploit mature wells

State owned oil and gas company PT Pertamina has signed an agreement with Central Java-based cooperative KUD Wargo Tani Makmur to exploit mature oil wells.

The agreement was signed by Pertamina's upstream unit PT Pertamina EP's Operational Director Bagus Sudaryanto with the cooperative's head Sukono on Tuesday in Pendopo, Blora Regency. Director General of Oil and Gas Evita Legowo, and oil and gas upstream regulator BPMIGAS' chairman R Priyono were present at the signing ceremony.

Under the agreement, the cooperative will exploit 24 mature oil wells owned by Pertamina, which are stiuated in the Banyubang structure, Jiken district, Blora regency. The wells date back to the Dutch colonial era and have been neglected by Pertamina.

The agreement is the first to be signed in line with the Ministerial Decree No. 1, 2008 on the exploitation of mature wells, which calls for the involvement of local communities in the exploitation of mature wells, BPMIGAS said in its website.

Priyono said in his speech during the ceremony that the total number of mature oil wells could reach 10,000 wells all over the country, but only 5,000 of the total could be feasibly re-operated.

He hoped the cooperation with Pertamina, local administration-owned companies (BUMD) and rural cooperatives (KUD) could be realized within the next two months so that the old oil wells could resume production at least by the end of this year.

Meanwhile, Evita said that his office had received eight applications from BUMDs and KUDs ? three in South Sumatra, two in East Kalimantan, one in Kendal, Central Java and another one in Gresik, East Java -- to take part in the cooperation. (Bernard)