Faster! Medco Targets Sakakemang Block to Start Up in Q3 2027

Banten, CNBC Indonesia — PT Medco E&P Indonesia targets first gas production from the Sakakemang Block to begin in the third quarter of 2027. The target is faster than the initial plan, which was expected to materialise in 2028.

Iwan Prajogi, Senior Vice President of Business Support at PT Medco E&P Indonesia, said the project acceleration is part of the company’s commitment to supporting national energy security.

‘For Sakakemang, this is development status; our target is Q3 2027 to be on stream. Please pray that we can be on stream in 2027, which is acceleration, because initially they were targeting perhaps 2028,’ Iwan said during the IPA Convex 2026 event, on Wednesday, 20 May 2026.

Iwan explained that the acceleration of development for Block Sakakemang will be achieved by leveraging the company’s existing facilities. This is considered more efficient than building new facilities independently as previously planned by the operator.

‘What we are doing is leveraging existing facilities. If previously they (Repsol or the former operator) wanted to build independent facilities, now what we’re doing is to integrate those facilities with the facilities already in place – the ones in Corridor,’ Iwan said.

As is known, PT Medco Energi International Tbk (MEDC) has officially signed a deal to acquire two Working Areas (WAs) or oil and gas blocks in South Sumatra. The two WAs are Sakakemang Block and South Sakakemang Block.

In the Sakakemang Block, Medco is acquiring a 45% participating interest (PI), while in the South Sakakemang Block it is acquiring an 80% PI. With this agreement, the company will become operator of the two working areas.

Roberto Lorato, Chief Executive Officer of MedcoEnergi, said that the acquisition, valued at around US90millionoraboutRp1.47trillion(assuminganexchangerateofRp16, 443perUS), will strengthen the company’s strategic position in South Sumatra as well as the integrated gas value chain in Java.

‘The portfolio of hydrocarbon reserves and ownership of strategic infrastructure provides access to assets with long-term cash-flow profiles, while strengthening MedcoEnergi’s role in supporting Indonesia’s energy needs,’ he said in a written statement, on Tuesday, 16 September 2025.

Block Sakakemang has already received approval for a Plan of Development (POD) from the Indonesian government and shares a direct border with Corridor Block operated by the company.

The acquisition follows the expansion of the Corridor Block recently completed by the company, as well as Medco being named the winner of the Amanah exploration block auction in South Sumatra. The expansion is also in line with the Indonesian government’s programme to ensure national energy resilience.