Darwin agrees to extend contract of Medco?s oil, gas blocks

Minister of Energy and Mineral Resources Darwin Z. Saleh has principally agreed to extend contract of oil, gas blocks operated by IDX-listed energy firm PT Medco Energi Internasional Tbk in Sumatra and Java, senior government officials said on Thursday.

Ministry?s Director General of Oil and Gas Evita Legowo and upstream oil, gas authority Chairman R. Priyono told reporters that Darwin has agreed to extend Medco?s contract Block A PSC onshore Aceh, South Sumatra Extension (SSE) PSC onshore South Sumatra and Camar PSC in Java Sea.

Evita and Priyono, however, did not give detail about the length of the contract extension, adding that technical details are still in discussion.

Aceh Block A PSC will expire next year. Medco and partners in the block Premier Oil and Japex has been asking for 20 years extension in order to reach final investment decision to develop the block. Evita and Priyono said Aceh Block A extension might come in contract amendment or extension to accommodate Aceh Special Autonomy Law which gives greater power for the province to manage its oil, gas resources.

SSE Block, which contract will expire in 2013 is currently the backbone of Medco?s oil, gas production while Camar block is a smaller oilfield in Java sea.

Medco has been scrambling for years to get the contract of those blocks extended. (bernard)