Medco buys two oil fields

JAKARTA (JP): Publicly listed oil and gas company PT Medco Energy Corporation has acquired a majority stake in two oil and gas fields located in East Kalimantan and Madura.

Medco reported Tuesday that it had signed an agreement to purchase a 75 percent stake in Western Simenggaris Petroleum Pty. Limited, which runs the East Kalimantan oil and gas field, and another 75 percent stake in Western Madura Pty. Limited which operates the Madura oil and gas field.

Both companies were previously controlled by City View Asia Pty. Limited, a subsidiary of the Australian based City View Energy Corporation Limited, a Medco spokesperson said in a statement.

According to Pertamina, the state oil and gas company, the Western Kalimantan field, covering 2,734 sq km, and the Madura field, with 2,719 sq km field, have good oil and gas potential.

However, Pertamina said, the two fields required further exploration to determine the extent of reserves.(03)