Medco, Mitsui sign oil deal

JAKARTA (JP): Local oil and gas company PT Medco Energy Corp. Tbk signed on Monday a one-year contract to sell 5,475 million barrels of crude oil to Japanese trading company Mitsui.

The company said in a statement that under the contract, Medco would sell 15,000 barrels of oil per day to Mitsui at the international price for 12 months starting from late this month or early next month.

"Based on the rupiah's current rate against the U.S. dollar, the value of the contract reaches Rp 1 trillion," the largest local private oil and gas company said.

The contract can be extended based on the agreement of both parties, it said.

The oil will be derived from the company's Kaji Semoga onshore oil field in South Sumatra, it said.

It will be the first crude oil exports to be made by the company as it currently sells its oil through state oil and gas company Pertamina. (jsk)