Re-operation of old wells will cost US$53 million
Wednesday, October 6 2004 - 03:17 AM WIB
State-owned oil company Pertamina is seeking partners to re-operate its 31 old oil wells which have been abandoned for several years due to the lack of modern technology to enhance production activities, Kompas reported on Wednesday.
"The re-operation of the old oil wells will cost at least US$53 million. Pertamina is seeking partners to develop the oil wells," an official of the Indonesian Chamber of Commerce and Industry (Kadin), Hilmi Panigoro, said in a seminar on bank financing in Jakarta on Tuesday.
According to Hilmi, investing in old oil wells would be less risky compared to the development of new oil wells. "The past performance of each old oil well could be used as the main guarantee for banks to provide financing," he said.
He said that the old oil wells would be able to produce much oil if all the exploration activities were replaced with modern exploration equipment. (*)