Medco E&P teams up with CNPC to develop Iliran block

PT Medco E&P Indonesia will team up with China National Petroleum Corporations (CNPC) to develop the Iliran High field in the South and Central Sumatra block, Investor Daily reported Tuesday.

Medco E&P president director Frila Berlini Yaman said in Jakarta on Monday that Medco had chosen to cooperate with CNPC because the Chinese company had the expertise to explore and produce thick crude oil.

?In the Iliran High field, we will produce thick crude oil in vast and narrow area,? she said, adding that Medco had drilled eight wells in the field to determine the thickness of the formation which contain oil reserves.

About the development of the Block A in Nanggroe Aceh Darussalam, Firla said that Medco had opened the tender for engineering, procurement and construction (EPC). In addition the company had also opened the bidding for the drilling to ensure that the final investment decision could be met this year according to the scheduled.

?We have also talked with ExxonMobil Oil Indonesia on the possibility of facility sharing agreement,? she said, adding that the company expected the production at the Block A could be commenced early 2014. (*)