Medco E&P to double gas output from Sumatra Extension block by 2008

Medco E&P Indonesia is targeting to double gas production from its South Sumatra Extension (SSE) block to around 150 million cubic feet per day (MMCFD) by 2008 from the current level of 75 MMCFD, a company official said Monday.

?Around 150 MMCFD will be produced from 50 gas wells in the block by 2008. Currently, we are constructing pipelines and compressor at the block?s gas facilities,? said company general manager in charge of South Sumatra area Pudjo Suwarno.

Pudjo said Medco E&P would also conduct several activities to maintain oil production from the block at present rate of 10,000 barrels per day.

Gas production from SSE block is delivered mainly to state-owned fertilizer PT Pupuk Sriwijaya and power plants operated by state-owned electricity firm PT PLN.

Last year, Medco E&P and state-owned gas distributor PT PGN signed a memorandum of understanding for gas supply of 100 MMCFD through South Sumatra-West Java pipeline starting 2009.

Medco E&P operates the block with 100 percent of working interest. The company is wholly-owned subsidiary of oil and gas listed company PT Medco Energi Internasional Tbk. (godang)