Pertamina EP takes over marginal fields from villagers

PT Pertamina EP (PEP), an upstream subsidiary of state owned firm PT Pertamina (Persero), has taken over 10 wells in Ramba field, South Sumatra from people who had illegally produced oil from the wells.

?Thus far, a total of 10 wells have been taken over by Pertamina EP with the help from security officers. As a consequence, Pertamina EP?s production is expected to increase,? PEP?s PR Manager Agus Amperianto said in a statement on Tuesday.

He said the illegal oil producers did not only cause concerns among the local community but also risked causing damages because they did not care about health, security, safety and environmental factors in their operations. Furthermore, the government has lost potential additional revenue since they never paid taxes or royalty to the government.

He said PEP?s oil production from Ramba is expected to increase by 200 barrels following the takeover of the wells.

Editing by Johannes Simbolon