Medco continues selling gas to PLN
Wednesday, July 2 2014 - 02:47 AM WIB
PT Medco E&P Indonesia, a subsidiary of IDX-listed PT Medco Energi International Tbk., will continue selling gas from the Keramasan field in the South & Central Sumatra block in Riau to state owned electricity firm PT Perusahaan Listrik Negara (PLN) through Medco?s subsidiary PT Meppogen.
"PLN has confirmed that the company still needs electricity from Meppogen," Medco?s President Director Lukman Mahfoedz told Petromindo.com on Monday.
He added that Medco will continue supplying around 15 mmscfd of gas once it has got the approval from upstream authority SKK Migas and Ministry of Energy and Mineral Resources.
?Gas is expected to flow again (to Meppogen) next week,? Lukman said, adding that the length of the contract and the price of gas are still being discussed.
Medco delivered gas to Meppogen but the seven-year contract between both companies expired at the end of June.
Previously, SKK Migas said PGN is also interested in the gas. The field?s production is decreasing, reaching at 30 mmscfd at present, according to Zuldadi Rafdi, SKK Migas?s spokesman.
Editing by Joahannes Simbolon