Medco awarded contract extension for Lematang PSC

IDX-listed energy firm PT Medco Energi Internasional Tbk announced on Thursday that the government has extended its contract on Lematang PSC in South Sumatra province for another ten years effective April 6, 2017.

The firm said it had completed the acquisition of the assets belonging to Swedish firm Lundin Petroleum in Indonesia, including a 25.8834 percent stake in Lematang.

Lematang is situated close to company-operated South Sumatra PSC. The firm hold 100 percent participating interest in the block through its subsidiary. The block?s production averaged 37.9 mmscfd in 2015.

The firm said the extension of the contract is a testament to the firm?s capacity to continue creating value and will strengthen the firm?s position on the domestic market.

?MedcoEnergi appreciates the trust and the opportunity given by the Government of Indonesia to continue operating the PSC,? CEO and Director Roberto Lorato said.

Editing by Johannes Simbolon