Medco, Anadarko terminate joint exploration deal

IDX-listed energy firm PT.Medco Energi Internasional Tbk and US oil firm Anadarko Petroleum Company have agreed to end their exploration drilling venture in Medco?s working areas in Indonesia.

Medco said in a report filed with the IDX that Anadarko would pay US$15.4 million to pay expenses incurred by Medco. Anadarko will also pay Medco US$25 million if it fails to conduct obligatory well drilling in Nunukan PSC, East Kalimantan by June 30, 2010.

Anadarko in July 2005 signed an exploration joint venture agreement with Medco, under which Anadarko is gaining access to Medco's 13 blocks onshore and offshore Sumatra, Kalimantan, Sulawesi, Java and Papua. Anadarko has committed to a three-year work program to fund wildcat exploration activities at a cost of U.S. $80 million in return for opportunity to earn up to a 40 percent interest in each PSC where a successful exploration well is drilled..(alex)