Medco E&P signs joint study agreement to develop S. Sumatra CBM prospect
Thursday, July 22 2010 - 08:55 AM WIB
PT Medco E&P Indonesia, an upstream unit of Jakarta-listed energy firm PT Medco Energi Internasional Tbk Thursday signed a joint study agreement to develop its Rambutan coal bed methane (CBM) prospect area in Musi Banyuasin, South Sumatra, with Research and Development Agency at the Ministry of Energy and Mineral Resources.
Under the agreement, both parties will evaluate and find technical parameters, evaluate CBM reserves in the area, economic model to operate CBM concession, complete drilling activities to boost output in the five wells in the Rambutan working area.
Rambutan area is part of Medco?s South Sumatra Extension (SSE) oil, gas block.
In Feb 2009, Australian CBM firm Arrow Energy Limited announced its subsidiary Arrow Energy (Indonesia) Holdings Pte Ltd. and PT Medco Energi CBM Indonesia, a subsidiary of oil and gas company PT Medco Energi Internasional Tbk have signed a Heads of Agreement to jointly explore for and develop CBM over Medco?s 1,889 square kilometer in the SSE Block. (godang)