Medco confirms interest swap offer with ConocoPhillips

JSX-listed oil firm PT. Medco Energi Internasional Tbk. confirmed on Monday it had sent proposal to US oil firm ConocoPhillips, offering to swap the latter?s 50 percent interest in Block A PSC in Aceh with interest in the former?s working areas in Indonesia.

?Medco has sent proposal (to ConocoPhillips), but thus far we don?t know whether or not it was interested as until now, we haven?t received any reply,? Chief Grwoth Officer Rashid Mangunkusumo told Petromindo.Com.

He did not specify Medco?s offer. Medco is currently operating tens of producing and exploration stage blocks across Indonesia.

ConocoPhillips is the operator of Block A PSC, with US major ExxonMobil holds the remaining 50 percent interest.

Reports said that another Indonesian firms Pertamina and JSX-listed Energi Mega Persada (EMP) have submitted swap offers to ConocoPhillips.

ExxonMobil is also in the process of farming out its interest in Block A through tender, in which Medco and EMP are participating.

BPMIGAS chairman Kardaya Warnika said recently that both process would expected to be completed by the end of first quarter.

Block A, which currently has gas reserves of around 500 BCF, would supply gas to Aceh fertilizer maker PT. PIM. Kardaya said PIM would need gas at a rate of 120 MMCFD to feed its two plants. (godang)