Medco allocates $14 million for Papua exploration program 2003

Oil producer PT Medco Energi International Tbk said on Thursday it had allocated US$14 million for exploration program in Papua in 2003.

Medco said the amount comprises $11 million for drilling two exploration wells and $3 million for feasibility studies in Yapen and Rombebai blocks which it expects to have large gas reserves.

?We expect gas reserves to be discovered in the blocks will be among the world?s largest gas reserves. There are strong indications that the blocks together have very large gas reserves,? Soegiharto, Medco?s finance director, said in its public expose meeting.

Medco?s operating director Rashid Mangunkusumo said on the same occasion that an appraisal well drilled in Yapen had shown 24-25 million cubic feet per day (MMCFD) of gas. But, a similar well drilled in Rombebai showed only 4.8 MMCFD of gas, he said.

Rashid said Medco, through its Medco International Venture Ltd, had acquired the two blocks from Continental Energy Yapen Ltd and Ramu International Ltd a couple of months ago. (leo)