PT Basic Energi Solusi, the foreign investment firm of Philippines’ Basic Energy Corp. and Malaysian firm Petrosolve Sdn Bhd, is set to acquire the management rights of 10 oil wells in Indonesia.
In a disclosure to the Philippine Stock Exchange, Basic Energy said that it has arrived at an agreement with Petrosolve for PT Basic Energi to acquire the rights to manage 10 identified oil wells in the Central Java area of Indonesia. The rights will be acquired from Petrosolve.
“Presently, oil in the area 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,” Basic Energy said.
PT Basic Energi Solusi is being supported by the exploration experience of Basic Energy and the chemical technology of Petrosolve for increased oil production.
“It [PT Basic Energi] shall undertake certain aspects of the management and operation of, initially, two oil wells in the area. PT Basic Energi shall implement a development plan aimed at rehabilitating old or abandoned oil wells for possible limited production,” Basic Energy added.
This joint venture between Philippine oil and gas firm Basic Energy and Petrosolve recently got further approval earlier this month for the establishment of PT Energi, which has an initial capitalization of 8.5-billion rupiah, or approximately $858,500.
PT Basic Energi, which has a registered office in Jakarta, will be the investment arm of the joint venture for the various business opportunities in Indonesia.