Medco confirms interest in BP?s Kangean block
Tuesday, March 9 2004 - 02:53 AM WIB
JSX-listed oil, gas company PT. Medco Energi International Tbk. confirmed on Tuesday that it was seriously considering to bid for BP PLC?s Kangean gas block offshore East Java.
?Medco is now evaluating the block,? said CFO Sugiharto without further elaborating.
Sources said that a number of foreign and local E&P companies are already in talks with BP to acquire the block.
BP is considering to sell assets in Indonesia, including interests in Java oil and gas blocks, to focus on the development of the Tangguh LNG project in Papua.
BP is currently trying to get early extension in Kangean block, to enable it to develop Terang-Sirasun gas field, which is estimated to have 1 TCF of gas reserves. BP's contract on Kangean will expire in 2010. The block also has Pagerungan gas field, which is now producing at declining rate.
BP has a 100 percent interest in Kangean block. (godang)