Medco ceases E. Kalimantan TAC operations
Tuesday, October 28 2008 - 01:04 PM WIB
IDX-listed energy firm PT.Medco Energi Internasional Tbk announced on Tuesday that Technical Assistance Contract (TAC) of Tarakan, Sanga-Sanga and Samboja Working Areas, also known as Kalimantan TAC Block in East Kalimantan has expired in October 15, 2008 and the company had returned the block to state oil and gas company PT.Pertamina.
The block produced 4,500 barrels of oil per day in the first half of 2008.
The company said in early 2008 it tried to extend the contract with Pertamina but was unsuccessful due to disagreement in commercial terms.
According to the company?s internal estimates, the block has proved reserves of 9.21 million barrels and 74BCF of gas. (alex)