Medco starts producing LPG

Medco starts producing LPG

JAKARTA: PT Medco Energi Internasional, Indonesia's biggest
publicly traded oil company, said it started output of liquefied
petroleum gas from its plant at the Kaji oil and gas field in
South Sumatra on Wednesday.

The plant, operated by Medco's PT Musi Banyuasin unit,
produces 150 metric tons of LPG a day, the company said in an e-
mailed statement on Thursday. The Kaji plant processes 20 million
cubic feet of flared gas daily from a nearby field operated by
Medco's exploration unit, PT Medco E & P Indonesia.

Medco is seeking to boost gas sales to compensate for a fall
in oil output from its main Kaji field, which produced an average
of 35,000 barrels a day this year, down from 75,000 barrels a day
in 2002, said Gamala Katoppo, Medco's corporate research and
information officer. -- Bloomberg