ConocoPhillips sells stake at Aceh gas block to Medco, Premier

JSX-listed energy firm PT Medco Energi Internasional Tbk. announced Tuesday it and UK independent oil firm Premier Oil have signed a Share Sale and Purchase Agreement with ConocoPhillips to acquire 100 percent shares of ConocoPhillips in ConocoPhillips (Aceh) Ltd. (CPAL), which holds 50 percent of working interests and operatorship in Block A PSC located in Aceh.

Medco and Premier will equally divide the interest.

The company said in a statement that its share of costs for the acquisition was US$36 million to acquire 25 percent .

Prior to acquisition, Medco and Premier had already had 16.67 percent interest each in the block. The two companies, together with Japan?s Japex acquired 50 percent interest in Block A from ExxonMobil in April 2006 and shared the interest equally.

After acquisition would be completed Medco and premier will have 41.67 percent stake at the block and Medco would become the block?s operator.

The block contains undeveloped discoveries on the Alur Siwah, Alur Rambong, and Julu Rayeu fields certified as holding over 650 Bcf gross of proved and probable reserves.

The block also offers substantial exploration upside. Around 20 prospects have been identified with total prognosed unrisked reserves of 1.5 tcf gross.

The government had been pushing to have natural gas flowing from Block A by 2010. (alex)