Pertamina to take over X-ray oil field from Arco

State owned oil and gas company Pertamina will take over the management and operation of X-Ray oilf ield offshore West Java from Arco, Bisnis Indonesia reported on Thursday.

Robin Lubron, the chief of the production at the state oil and gas company's Production and Exploration Division, said on Wednesday that Pertamina would take over the oil field because Arco had stopped all the production activities at the oil field for at least two years.

He said tha Arco quit the oil field because the production was no longer economically feasible due to the sharp increase in the overhead costs. "Arco's production costs reached US$11 per barrel, while according to our estimate the costs could be lowered to $6 per barrel," he told the daily.

Robin said that if the plan is realized, the oil field would be Pertamina's first offshore operation because it has so far operated only on-shore oil fields. (*)