Medco must first find gas buyer if it wants to buy Donggi block

State oil and gas firm PT Pertamina has demanded publicly listed PT Medco Energi International Tbk to first find a permanent buyer for oil and gas of the Donggi Block in Central Sulawesi before the latter company acquires a stake in the project, Bisnis Indonesia daily reported on Wednesday.

Pertamina’s president director Ariffi Nawawi said his company is open to Medco's plan to buy a stake in the Donggi Block.

“We are open to Medco’s offer and the offer came from a domestic company. However, we have insisted in our talks with Medco several times that there should be a commitment regarding the purchase of gas from Donggi,” Ariffi told journalists after meeting Minister of Energy and Mineral Resources Purnomo Yusgiantoro on Tuesday in Jakarta.

Pertamina’s requirement, according to Ariffi, for Medco to first find buyer for the oil and gas is intended to strengthen the prospects of the Donggi Block project.

“Medco will not only function as a shareholder but also a gas seller,” Ariffi said.

He also said so far, Medco has agreed to all the terms and conditions set by Pertamina. (*)