Government Use Old Oil Wells

Bojonegoro - Director of the Upstream Oil and Gas Ministry of Energy and Mineral Resources R Priyono, says accordance Candy ESDM No. 1 Year 2008, the old wells could cooperatives or enterprises productions. "But the cooperative or enterprises must submit all results to the KKKS oil production. So they only get service from KKKS offs, "he said.

If cooperatives or enterprises do not submit all results to the KKKS oil, it may be subject to criminal sanctions. Priyono said the cooperation period cooperatives or enterprises with KKKS is five years and renewable. Cooperation agreements must be approved by the Director General of Oil and Gas and BP Migas unknown

The assurance of cooperation that came with the government agenda in the near future will use the old wells that were no longer productive since 1970. Ie there is an old well that 5000 will be reactivated.

From the data obtained from the Director General of Oil and Gas Ministry of Energy and Mineral Resources said that the old wells 5000 can be reactivated with a total production rate between 5000-12000 barrels per day. Oil production from older wells is quite favorable with the current oil prices.

To do that, the government issued Regulation of the Minister Energy and Mineral Resources No. 1 Year 2008 on Guidelines for the Petroleum Mining Concessions at the Old Well that regulate the use of old wells. From 5000 the number of these wells are part of the total old wells that reached 13,824.

The wells consisted of 745 active wells and 13,079 disabled and most are in the working area of PT Pertamina EP. Location of old wells is 3143 units of East Kalimantan, Sumatra, the southern part of 3623, 2392 northern Sumatra, Central Java and East Java 2496, 1633 central Sumatra, Ceram 229, 208 Papua, and Kalimantan 100.

Definition of old wells are wells that have been drilled and produksikan before December 31, 1970, but the contractor has abandoned cooperation contract (KKKS). Currently, the old business has done well Bogo Sasono Cooperatives in the working area of PT Pertamina EP Cepu Bojonegoro, Central Java. Production levels reach 200-300 barrels per day