Govt extends Medco's oil contracts

Govt extends Medco's oil contracts

The Jakarta Post, Jakarta

The government has extended contracts held by energy firm PT
Medco Energy International Tbk permitting its exploitation of the
Rimau Block in South Sumatra and the Tarakan Block in East
Kalimantan, the company said on Wednesday.

The contracts covering both blocks were extended by 20 years,
the company said in a statement, adding the extensions had been
signed by state oil and gas company Pertamina and approved by the
Ministry of Energy and Mineral Resources.

The Rimau Block contract has been extended from April 23, 2003
to April 23, 2023, and the Tarakan Block contract from Jan. 14,
2002 to Jan. 14, 2022.

Rimau Block is operated by Medco units Exspan Airsenda Inc.
and Exspan Airlimau Inc, while Tarakan Block is run by PT Exspan
Tarakan.

"With the extensions, the company will have more flexibility
to continue developing the two oil and gas fields to further
increase production," it said.

Rimau Block, now producing 83,883 barrels of oil equivalent
per day (boepd), contains proven reserves of 153 million barrels
and probable reserves of 185 million barrels.

Tarakan Block, now producing 1,200 boepd, is believed to
contain an oil reserve of 1.4 million barrels.

Medco currently produces 91,000 boepd.