Medco eyeing Aceh gas reserves increase

IDX-listed energy firm PT Medco Energi Internasional Tbk plans to carry out 2-well exploration drilling campaign at Aceh Block A gas block onshore Aceh early next year to increase the block?s reserves.

President Lukman Mahfoedz said that in the event of discovery, gas will be supplied to Arun LNG plant. He did not give further detail.

Medco operations director Frilia Berlini Yaman was quoted by The Jakarta Post as saying that the company had talked to ExxonMobil, the operator of the Arun LNG plant, about the plan, but no deal had been made yet. She added that if exploration went well, the company expected to begin supplying gas to Arun in 2014.

Medco is the operator of Block A with a 41.67 percent stake, while two other partners, Premier Oil Sumatra (North) BV and Japex Block A Limited, own 41.67 percent and 16.67 percent respectively.

Current gas reserves in the block has been sold to fertilizer maker PT Pupuk Iskandar Muda (PIM) and state electricity firm PLN with supply seen to start 2013-14. (godang)