Medco eyeing the remaining stake at Block A

JSX-listed oil and gas firm PT. Medco Energi Tbk confirmed on Wednesday it, together with Premier oil and Japex had acquired 50 percent stake in Aceh Block A PSC from US oil firm Exxon Mobil Corp and is looking to acquire another 50 percent interest in the block from operator ConocoPhillips.

?Medco is currently in talks with ConocoPhillips to purchase ConocoPhillips? 50 percent interest in the block,? Medco?s director Rashid I Mangunkusumo told Petromindo.Com.

The Medco-led consortium completes acquisition deal on the block, which is formally known as North Sumatra Block A PSC. Acquisition price was not disclosed, but a source that was familiar with the deal said that the consortium paid Exxon Mobil US$51 million.

According to Premier Oil release, the block contains undeveloped discoveries on the Alur Siwah, Alur Rambong, and Julu Rayeu fields certified as holding over 650 Bcf gross of proved and probable reserves.

The block offers substantial exploration upside. Around 20 prospects have been identified with total prognosed unrisked reserves of 1.5 tcf gross, said Premier.

Current operator ConocoPhillips has been in talks to sell the block?s gas to Aceh fertilizer maker PT. Pupuk Iskandar Muda (PIM), who is striving for gas to continue production after gas supply contract with Exxon Mobil expired.

The government had also agreed to improve the contractor?s split on the block to 48 percent from 35 percent previously. (godang)