FID for Block A expected in January
Wednesday, December 17 2014 - 02:55 AM WIB
IDX-listed PT Medco Energi Internasional Tbk expects to be able to complete the final investment decision (FID) for the Block A PSC in Aceh in January 2015.
President Director of Medco Lukman Mahfoedz told Petromindo.com that the FID has yet to be completed as the company is still awaiting for approval from government on the gas sales agreement (GSA).
?God willing, the FID for Block A will be completed in January 2015,? he said.
Lukman said earlier that his company has reached an agreement with state-owned oil and gas firm PT Pertamina and fertilizer firm PT Pupuk Iskandar Muda (PIM) for a new gas supply scheme.
Medco initially planned to supply gas to PIM. But considering among others the considerable distance between the gas field and the PIM facility, the company redirect the gas delivery to the 370-Km Arun-Belawan pipeline, while PIM would get gas from Pertamina?s Arun regasification plant in Aceh, which is closer.
?The scheme which has been approved is for Medco to deliver 58 mmscfd of gas from Block A to the Arun-Belawan pipeline to be distributed in North Sumatra. In exchange, Pertamina will deliver gas from its Arun regasification plant to the PIM facility at a volume of 54 mmscfd,? he said.
This program will reduce the volume of gas needed for compression, due to the considerable distance between the location of Block A and PIM. PIM will also benefit from more competitive transportation costs, according to Lukman.
PT Medco E&P Malaka, Medco?s subsidiary, is the operator of the PSC with a 41.6667 percent working interest while KrisEnergy Ltd holds 41.6666 percent and Japex Block A Ltd. the remaining 16.6667 percent.
Editing by Reiner Simanjuntak