Medco eyeing upstream ventures with Anadarko, PTTEP

Medco E&P, unit of JSX-listed oil company Medco Energi International Tbk. is in talks with US oil company Anadarko Petroleum Company and Thailand?s upstream oil company PTTEP to joint force in Indonesian upstream oil and gas business, a company official said.

Medco E&P director Budi Basuki told Petromindo.Com that the company is in talks with Anadarko to swap a percentage of interest in Medco?s South Sumatra working areas with Anadarko?s newly acquired North East Madura III exploration block offshore East Java. ?Talks are still ongoing,? he said without giving specific details, but he hinted that Anadarko is especially interested in farming in Rimau block, where maturing Kaji-Semoga field - Medco?s main oil producing field with production of around 40,000BPD - is located.

Budi did not say the percentage of interest Medco is eyeing in North East Madura III block. Anadarko won the block last year through government tender after competing heavily with US oil giant ChevronTexaco.

Elsewhere, Budi also said that Medco?s former shareholder PTTE&P is also interested in farm-in Medco?s oil, gas blocks, but said that the talks are still at preliminary stage. ?PTTEP was selling its shares in Medco because they wanted to stick 100 percent to upstream business whereas Medco is diversifying into other segment of energy business such as power plant. Now PTTEP wants to get back through interest acquisition in some of Medco?s working areas,? he said. (alex)