Medco increases interest in Aceh Block A PSC

IDX-listed PT Medco Energi Internasional Tbk announced on Monday that its subsidiary PT Medco E&P Malaka has reached agreement to acquire Japex Block A Ltd?s 16.6667% interest in the Block A Aceh Production Sharing Contract.

Completion of the transaction is conditional on the approval of the Government of Indonesia and the Government of Nangroe Aceh Darussalam. Upon completion Medco will hold a 58.3334 percent operating interest in the block.

Medco recently awarded the Engineering Procurement and Construction (EPC) contract for the Phase 1 development of the Block A gas project to a consortium of PT JGC Indonesia and PT Encona Inti Industri (JEC). First gas will commence in the first quarter 2018, when under the Gas Sales Agreement signed in January 2015 with Pertamina, Medco will deliver 58 billion British thermal units (Btu) per day, 198 trillion Btu over 13 years.

Medco?s CEO Roberto Lorato said, ?This acquisition further underlines MedcoEnergi?s strong domestic position and our commitment to develop and monetize the resources in this block in support of the Government?s plan to develop Aceh infrastructure.?

The current participating interest in the block is Medco 41.6667 percent (operator), KrisEnergy 41.6666 percent, and Japex 16.6667 percent.

Editing by Johannes Simbolon