Exxon Mobil sells interest in Aceh gas block to Medco-led consortium

A consortium led by JSX-listed oil and gas firm PT. Medco Energi Internasional Tbk. Been picked by US oil giant Exxon Mobil Corp as buyer for its 50 percent non-operating interest in Aceh Block A gas field.

A source told Petromindo.Com Wednesday that the deal would be signed in Singapore Wednesday. Another members of the consortium are UK independent oil firm Premier Oil PLC and Japan Petroleum Exploration Corp. (Japex).

The source did not give further detail.

Block A is operated by US oil major ConocoPhillips, which is also reportedly in the process of selling its interest. ConocoPhillips has 50 percent interest in the block.

Block A contains some 500 billion cubic feet of gas reserves and is designated to be sold to Aceh fertilizer maker PT. Pupuk Iskandar Muda (PIM).. The government expects to have natural gas flowing from Block A by 2008-2009. The government had also agreed to improve the contractor?s split on the block to 48 percent from 35 percent previously. (godang)