Pertamina to activate 42 old oil fields in South Sumatra

State owned oil and gas company Pertamina will develop at least 42 old oil fields in South Sumatra to take the advantage of the surge in the crude oil prices in the international market, Investor Daily reported on Monday.

Pertamina's director for oil and gas exploration and production, Hari Kustoro said in Jakarta over the weekend that the old oil fields or also called brown oil fields had been inactive for years due to the high cost of their production activities.

"But with the surge in crude oil prices, the development of the brown oil fields will be quite feasible," he was quoted as saying. He added that besides using its own financial soures, Pertamina would also invite both local and foreign oil companies to redevelop the old oil wells.

"At present, Pertamina is reopening seven of the old fields. Pertamina will also open the opportunity to other companies to develop them under join operation schemes," he said.

According Kustoro, besides the development of the old fields, Pertamina has also carried out exploration activities in at least 19 new oil fields in Central, South, and West Sumatra and in South Sulawesi as part of the program to fulfill the company's higher oil and gas production target.

This year, Pertamina has targeted to produce 141,000 barrels of oil per day, 1,060 million standard cubic feet of gas per day, and also 5,068 tons of geothermal per day. (*)