MANILA, Philippines - Basic Energy Corp. has commenced exploration work on the first two of 10 existing oil wells in Indonesia for possible future implementation of an enhanced oil recovery technology through its partner Petrosolve Sdn Bhd of Malaysia.
This after Basic Energy agreed with Petrosolve for the latter to assign its rights to manage 10 identified Indonesian oil wells in Central Java to PT Basic Energi Solusi, a foreign investment firm owned by both parties via their joint venture company the Grandway Group Ltd.
Basic Energy chief executive officer Oscar de Venecia Jr. is optimistic the venture would result in a healthy return for the company through production from these wells.
PetroSolve will use a chemical enhancement application that is a proven technology in boosting oil production using cost-effective chemical processes.
The chemical enhancement process resulted in an increased production in 10 oil wells by 2,000 barrels per day. A total of 64,000 additional barrels were also produced in 20 months from another old small field, Basic Energy said.
De Venecia said PT Basic Energi Solusi would also drill to the maximum allowable depth in the designated wells, with the aim of yielding positive results for the venture.
“The exploration expertise of Basic Energy and PetroSolve’s enhanced oil recovery technology should yield positive results for our venture,†he said.
Presently, oil in some areas in Central Java is produced by small groups of miners, using a combination of manual and mechanized systems to reach variable depths ranging from 80 to 300 meters.
PT Basic Energi Solusi will implement a development plan for the initial two oil wells aimed at rehabilitating old and abandoned oil wells for possible limited oil production, Basic Energy said.
The venture has already commenced mobilization of the necessary manpower resources and logistics in the areas involved for the drilling operations soon to be undertaken.
Basic Energy announced the partnership in February, saying that the partnership would allow both companies to expand their respective operations globally.
The partnership could be for projects within and outside the Philippines, De Venecia said.
Petrosolve is a company registered in Malaysia and is engaged in the business of oil field services including application of chemicals for increased oil production and the development of oil and gas fields and wells.