Medco acquires more stakes at Lematang PSC

JSX-listed oil, gas producer Medco Energi International Tbk. through its subsidiary Exspan Lematang has signed sales and purchase agreement (SPA) with Indo-Thai (Lematang) Limited to buy the latter?s 4.1178 percent working interest in lematang PSC onshore South Sumatra for US$ 312,000.

Medco said the take over will take effect by March 31, 2004.

Medco is the operator of Lematang block with 70 percent working interest prior to the takeover.

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. (alex)