Medco eyeing Kakap and Sembakung blocks

JSX-listed oil and gas firm PT Medco Energi International Tbk. on Monday confirmed that the company is currently competing to acquire interest in ConocoPhillips-operated Kakap gas block offshore West Natuna and Sembakung TAC block onshore East Kalimantan, which is operated by Canadian junior oil company Resolute Energy.

?The tender process for Kakap is ongoing, but we are facing stiff competition from other companies such as Premier Oil and CNOOC (China National Offshore Oil Corporation),? said Medco director Rashid Mangunkusumo.

Kakap is an oil and gas-producing block with production of around 9,000 barrels per day (BPD) of oil and some 60 million cubic feet per day (MMCFD) of natural gas. Gas production is exported to Singapore through pipeline. Sembakung is an oil-producing block with production of around 2,500 BPD.

Medco is on aggressive acquisition mode to meet the company?s planned growth of 15 percent per annum. Rashid said aside from the two blocks, Medco is also in talks with several foreign companies, which wanted to reduce their Indonesian risk exposure.

Rashid, however, said Medco would focus acquisition on producing blocks as the company currently has sufficient exploration block in its portfolio. (alex)