Medco complains of oil stealing at old wells in Block A
Thursday, March 19 2015 - 06:32 AM WIB
Medco EP Malaka, the operator of Block A in East Aceh, said that despite continued efforts to warn the public of the danger in reopening aging oil and gas wells, the illegal activities continue.
The latest incident occurred March 8 at JR 57 well, an aging well which was shut down by previous operator in 2000. The illegal reopening of the well caused fire incident. But luckily the company, with the help of local authorities, managed to put off the fire quickly.
Medco said in a statement Thursday it is currently at the stage of developing the gas reserves at Block A, the output of which to be allocated for industries in Aceh and North Sumatra.
A gas sales and purchase agreement was signed in January 2015 with Pertamina, with gas supply to start in 2017 at a volume of 63 bbtu per day for 13 years.
Editing by Reiner Simanjuntak