Medco buys into Langsa oil field

JAKARTA: Oil and gas company PT Medco Energi International has bought a 70 percent working interest in Langsa oil field in Aceh province from Singapore company MODEC Production (Langsa) Pte. Ltd, a press release said on Monday.

A sale and purchase agreement was signed on Dec. 24, 2003 between MODEC and Medco's subsidiary MEDCO MOECO Langsa Limited. It makes MEDCO the majority shareholder in the Langsa Technical Assistance Contract (Langsa TAC).

The statement said that the purchase reflected the confidence of both Medco Energi and MOECO in investment prospects in Aceh.

MODEC Inc. previously owned a 90 percent working interest of Langsa TAC, which is located in the Strait of Malacca, 55 kilometers offshore of restive Aceh. With the sale, MODEC now owns only 20 percent of the oil field. The remaining 10 percent is owned by PT Indama Putera Langsa. -- JP