Small firms encouraged to develop marginal fields
Friday, February 22 2013 - 01:55 AM WIB
The government is encouraging small to medium-scale national firms to develop marginal oil and gas fields to help offset the current decline in the country?s oil production, Minister of Energy and Mineral Resources, Jero Wacik said during a recent meeting with the House of Representatives Commission VII on energy.
Jero said that for large firms, developing marginal fields is considered to be less economical. ?Large firms are not excited to get 1,000 bpd. But for smaller firms, it?s quite huge, they?ll be excited,? he said.
He said that there are quite plenty of marginal fields in the country, around 52. Thus, if they?re developed it could help increase national oil production, he said.
To help push the development of the marginal fields, the government has promised incentives as stated in a 2005 ruling of the Ministry of Energy and Mineral Resources.
Editing by Reiner Simanjuntak