Medco in talks to acquire C. Kalimantan block

Pertamina subsidiary PT. Elnusa said on Tuesday it was in talks to farmout part of its interest in Bangkanai block in Central Kalimantan with JSX-listed energy firm PT.Medco Energi International Tbk.

Elnusa president Rudy Radjab said that Medco wantend to secure its position in bangkanai as Medco had already in talks to offtake Bangkanai?s gas to power Medco?s proposed Central Kalimantan power plant.

Rudy said that Elnusa would retain majority interest and operatorship of the block. ?The plan must be okayed by Elnusa?s board of commissioners,? he said. Rudy did not say how much gas was already discovered by previous operator in Bangkanai as Elnusa has yet undertake exploration drilling in the block. Prior to be awarded to Elnusa in 2003, the block was operated by Unocal Corp.

According to Petromindo.Com data, Elnusa has 51 percent working interest in the block with the remaining balance held by PT. Mitra Energi Bangkanai, a local company controlled by Ilham Habibie, a son of former president BJ Habibie.

Elsewhere, an industry source told Petromindo.Com Tuesday that Medco would likely drop its plan to buy Wasian Mogoi TAC block in Papua. (godang)