CORRECTION: Medco asked to use ExxonMobil facilities in Aceh

(The portion of shares owned by Japex and Premier Oil in Block A was misstated in the last paragraph of the previous article. Following is the correct version of the article)

 

The government called on of JSX-listed energy firm Medco Energi Internasional to use the facilities owned by American energy firm ExxonMobil in Lhok Sukon, Nanggroe Aceh Darussalam (NAD), to transmit gas from its Block A gas field in a bid to accelerate gas production at the block and reduce investment cost, Kompas reported Saturday.

 

Head of Oil and Gas Regulating Body BPMIGAS Kardaya Warnika said in Jakarta on Friday that there were several pipelines  belonging to ExxonMobil in the area, which are now either not used or over capacity because depleting production from the company's Arun Field.

 

Earlier, Medco Energi's director of development Rashid I Mangunkusumo said the consortium led by Medco would develop Block A specially to meet the gas requirements of Pupuk Iskandar Muda (PIM) fertilizer company located in the province. But so far there is no agreement on price with the PIM.

 

Besides PIM, the state electricity firm PLN is also interested in buying gas from Block A for its power plants in the province and North Sumatra.

 

The block is operated by Medco with a 41.67 percent interest. Other participants are Japex (16.66 percent) and Premier Oil (41.67 percent).  (*)