MANILA, Philippines – Basic Energy Corp. and its Malaysian partner Petrosolve Sdn Bhd have forged a deal to develop 10 oil wells in Indonesia.
In a disclosure to the Philippine Stock Exchange, Basic Energy said the partnership has reached an agreement for PT Basic Energi Solusi to acquire from Petrosolve the rights to manage 10 identified oil wells in the Central Java area.
PT Basic Energi Solusi is the foreign investment company incorporated by the parties’ joint venture company, Grandway Group Ltd., in Jakarta, Indonesia.
Under the agreement, PT Basic shall initially manage the development of two oil wells in the area.
“PT Basic Energi Solusi shall implement a development plan aimed at rehabilitating old or abandoned oil wells for possible limited production. It has commenced mobilization of the necessary manpower resources and logistics in the areas involved to oversee the drilling operations soon to be undertaken,” Basic Energy said.
The business program in Indonesia is banking on the experience of Basic Energy in exploring oil wells and the chemical technology of Petrosolve for increased oil production.
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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.
Basic Energy and Petrosolve announced their 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, Basic Energy president Oscar 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.
Basic Energy is a listed firm presently engaged in energy development, particularly oil exploration. It also has investments in petroleum projects include the exploration and development of contract areas situated in offshore and onshore Mindoro.