Pertamina ties up with Aceh oil company

Pertamina has agreed to cooperate with PT Haseba, a company established by the Aceh government, to operate the state owned oil and gas company's old oil wells in the province, Suara Karya reported on Monday.

Under the agreement signed last week, Haseba would operate Pertamina's old oil wells in Kuala Simpang, Aceh under a production sharing contract for 10 years. Under the contract, Haseba should provide all the financial requirement needed to carry out to enhance the oil production in the existing oil wells.

Pertamina said that the expenditures made by Haseba in its operation would be compensated with part of the oil production. Haseba is not allowed, however, to transfer the contract to other firms. (*)