Pertamina hands over old oil field to private company

The operation unit of state owned oil and gas company Pertamina in Prabumulih, South Sumatera handed over on Friday the operation and management of the Kruh Area oil field in the province to a local company.

The local company PT Binatel Kruh would operate the oil block under a technical assistance agreement, a contract scheme especially awarded for the operation of old fields.

The Kruh Area block comprises of several production sites including Kruh, North Kruh, Langgaran and Saka.

Kun Kurnelly, the general manager of Pertamina?s operation unit in Prabumulih, said that PT Binatek Reka Kruh was chosen to operate the oil block through a tight selection.

?The selection is not only based on the financial capability but also the technical aspect of the company,? he was quoted by Sriwijaya Post daily as saying.

The Kruh Area is the third oil fields, which were transferred to private companies this year. The other two are the Sembakung field in East Kalimantan and Tanjung Lontar, Lahat, South Sumatera. Both areas are operated by subsidiaries of a Canadian oil company. (*)