Medco close to reach Block A gas supply deals

By Godang Sitompul

Upstream company PT Medco EP Indonesia said it is finalizing negotiations for gas supply from Block A PSC in Aceh Province with state-owned port operator PT Pelabuhan Indonesia and state-owned electricity firm PT PLN.

?Medco is currently finalizing negotiations with PT Pelindo I and PLN,? a source told Petromindo.com Tuesday, adding that the two companies will absorb 5 mmscfd of the Block A gas.

The source also said that state-owned oil and gas firm PT Pertamina is expected to absorb 58 mmscfd of gas.

IDX-listed energy company PT Medco Energi Internasional Tbk said in June that construction progress at Block A PSC in Aceh Province operated by subsidiary PT Medco E&P has reached 48 percent, while the central processing plant has reached 68 percent.

Medco expects the Block A PSC to start production in the first quarter of 2018. The block is is 85 percent owned by Medco (operator) and 15 percent by KrisEnergy Ltd.

Editing by Reiner Simanjuntak