Migas Practitioner: PHE Is Ordinary For Cooperation

JAKARTA - Chairman of the Indonesian Oil and Gas Community (KMI) S Herry Putranto believes, PT Pertamina Hulu Energi (PHE) as Pertamina's Upstream Sub Holding responded positively to the statement that Pertamina would cooperate with oil and gas wells that were not actively operating or idle. Because continued Herry, so far PHE has been used to working with partners.

"PHE must be positive, because they are used to collaborating with partners with various patterns," Herry explained to the media today, Wednesday, September 27.

According to Herry, the request to work together is more a boost. Although the impact is not too significant to pursue the lifting target of 1 million barrels per day, it is at least able to drive the economy of medium and small entrepreneurs.

"The oil (production) continues to fall, that's why it is collaborated which has been idled through KSO. Because if small wells are totaled, it knocks 10 thousand barrels per day. But it's not bad for small-scale partners," said Herry.

The production capacity of these idle small wells, explained Herry, is generally below 3,000 barrels per day. Meanwhile, those with a capacity of around 3,000-4,000 barrels per day can be carried out by middle-scale partners such as Indika.

"If all idle wells are collaborated, maybe the collected oil production can reach 10 thousand barrels per day," he said. In fact, he added, cooperation can also be carried out with universities or Regional Owned Enterprises (BUMD).

"For universities, of course, it's more of a business institution," he said.

Cooperation with universities can also be a means for students to gain oil. The pattern can be universities participating in other companies or done by themselves.

"If done alone, the one who takes on the role is a campus business institution such as PT LAPI ITB or MAKARA UI," explained Herry.

Cooperation with BUMD is also necessary. Especially, avoiding the use of idle wells by individuals illegally. Illegal management by individuals, generally do not pay attention to the safety level or Health Safety Security Environment (HSSE). They could be smoking, even though the wells are flammable.

"That's why, if it is collaborated with BUMD, it can be more orderly," he said.

In this context, Herry did not dismiss, that even companies in collaboration with PHE, must be companies that also maintain the HSSE aspect of their operations.

Regarding the statement that Pertamina cooperates for idle wells, previously conveyed by the Minister of Energy and Mineral Resources (ESDM) Arifin Tasrif and also the Minister of Investment Bahlil Lahadalia.

"We have asked that it be cooperated or released, we have given the rules for it to already exist from the Ministry," said Arifin in Nusa Dua, Badung, Bali, last Friday weekend.