Pertamina to use VSIT to increase production

State oil and gas company Pertamina is planning to use Russia's Vibration Seismic Impact Technology (VSIT) to increase production, particularly in the Prabumulih field in South Sumatra province by the end of the year, an official said on Tuesday.

"The memorandum of understanding (on the contract agreement) has been signed with Russia. It will be followed up by the establishment of a pilot project in Prabumulih," Pertamina's director for upstream industry Iin Arifin Takhyan told journalists, as quoted by Antara.

He said Pertamina was very interested in applying the Russian technology, because it had earlier proved to be effective in stepping up the production from old oil wells operated by oil firm PT Caltex Pacific Indonesia.

The production increase has reportedly reached 20 percent over the baseline agreed upon by Caltex and the license holder of the VSIT technology in Indonesia, PT Wahana Petro Nusa.

"Besides, in the pilot project, Pertamina need not pay if the technology does not succeed in increasing the production of the Prabumulih field," he said.

He said that Pertamina was still negotiating with Wahana Petro Nusa whether to take over the contract that had earlier been concluded between the company and Caltex.

Takhyan said Pertamina's production in its own operation in Prabumulih had reached 50,000 barrels per day.

"The figure is expected to go up to 55,000 barrels per day," he said. (*)