Exspan to acquire 5% interest in Lematang oil block

Oil and gas producer PT Medco Energi International, the operator of the Lematang oil concession area, reported that its subsidiary PT Exspan Lematang had signed an agreement to acquire 5 percent of working interest in the block from Indo-Thai (Lematang) Limited.

"This agreement is still subject to the fulfillment of conditions stipulated in the agreement," Medco said in a report filed to the Jakarta Stock Exchange on Monday.

Indo-Thai (Lematang), an associated company of British Virgin Islands-based company Petroleum Development Associates (PDA) Limited, holds 15 percent interest in the Lematang oil block.

Medco operates the Lematang oil block with 70 percent of working interest, while the other participant, Swedish's Lundin Petroleum, holds 15 percent.

Lematang PSC is located onshore South Sumatra. The block comprises the Harimau, the Singa, the Banteng, the Tapir, the Siamang, the Kijang, and the Tupai fields. Among these fields, the Harimau field is still producing, while the Singa is under development.

Gas from the Harimau field is delivered to Pusri, the fertilizer plant in Palembang, while condensate is delivered to Prabumulih.

Exspan has recently started to manage the block and is preparing a Plans of Development (POD) for the Singa field. The company said it would conduct a study on the building of a gas manufacturing infrastructure in the field. (robert)