Anadarko to drill 3 wells in Medco's blocks

US independent oil company Anadarko Petroleum is planning to derill three exploration wells in Medco Energi Internasional's working areas by the end this year, the company said in its third quarter operations report released Friday.

The company said it was currrently evaluating Medco's identified prospects.

Anadarko in July signed an exploration joint venture agreement with Medco, under which Anadarko is gaining access to Medco's 13 PSCs totaling 7.8 million acres onshore and offshore Sumatra, Kalimantan, Sulawesi, Java and Papua.

Anadarko has committed to a three-year work program to fund wildcat exploration activities at a cost of U.S. $80 million in return for opportunity to earn up to a 40 percent interest in each PSC where a successful exploration well is drilled at Anadarko's cost and a plan of development is approved.

Aside from agreement with Medco, Anadarko has also been awarded in December 2004 North East Madura III Exploration Block by the Government of Indonesia. Anadarko is preparing to drill the initial two wells on the block. (alex)