People Can Get IDR 2 Million Per Day From Managing People's Wells

JAKARTA - Minister of Energy and Mineral Resources (ESDM) Bahlil Lahadalia revealed the calculations of profits obtained by people who manage old oil wells.

The term old well itself refers to petroleum wells drilled before 1970, have produced, and are currently no longer being worked on by active contractors, according to the Regulation of the Minister of Energy and Mineral Resources Number 1 of 2008 concerning Guidelines for Equipment of Oil Mining at Old Wells.

"After I checked, one community well could get three barrels to five barrels," Bahlil explained as quoted on Saturday, July 19.

He explained that one barrel is equivalent to 159 liters, so three barrels almost reach 500 liters. With an ICP price of 70 US dollars per barrel and an assumption of a 70 percent share of the proceeds, each barrel generates around 49 US dollars. This means that in one day the well can earn around 147 US dollars and rounded it up to 150 US dollars or the equivalent of more than Rp. 2 million.

In addition to contributing to national oil production, there are old well rules and the community also absorbs a lot of workforce. Thus, the economic turnover of the community regarding the people's wells has a real positive impact.

"One workforce well can be 10 people. So this creates jobs for the community. Then people's incomes have an economic turnover," said Bahlil.

Bahlil said the optimization of old wells was also considered strategic in terms of efficiency, because it utilized existing infrastructure and reserves. The government targets the contribution of production from old wells and people's wells to continue to increase gradually, and become an important support in achieving the production target of 1 million barrels of oil per day.