Medco, Anadarko review joint exploration agreement

National oil and gas company PT Medco Energi International and American independent energy firm Anadarko Petroleum will review their joint exploration agreement that allows the American firm to explore for oil and gas at MedcoEnergi’s blocks in the country.

 

A source said under the planned new agreement, the list of MedcoEnergi’s blocks or fields where Anadarko will conduct explorations will be cut to 9 from 13.

 

“Four blocks and fields that will be taken out from the list are among others Simenggaris, Senoro and Brantas,” the source said.

 

In compensation, Anadarko will increase its share from the future oil and gas output from MedcoEnergi’s block to 60 percent from 40 percent at present effective in December this year.

 

Under the agreement signed by MedcoEnergi and Anadarko in July last year, they will jointly develop exploration programs covering the seismic, geological and geophysical, and exploration drilling with Anadarko to fund activities at a cost of US$80 million over the three-year period. (Godang)