Medco farms out part of interest in S. Sumatra exploration block to Mitsui

JSX-listed oil company PT. Medco Energi Internasional Tbk. said it had further farmed-out 20 percent interest in Merangin I PSC onshore exploration Block to MOECO, a subsidiary of Japan?s Mitsui Oil Exploration Company.

The farmout reduced Medco?s interest in the block to 41 percent as earlier it had also farmed out 39 percent interest to a subsidiary of Thai energy conglomerate PPTEP.

The Merangin I covers an area of approximately 3,200 square kilometers. The block is located onshore, in the south of Sumatra. A primary geological study for Block Merangin I indicates crude oil potential. The Company plans to drill one exploration well in 2005.

The block was awarded by the government to Medco in 2003. (alex)