Medco, partners to spend $20 million to bring Langsa Block back to peak production

JSX-listed oil company PT Medco Energi International Tbk said it, together with joint venture partners, would spend around US$20 million to bring Langsa TAC oilfield offshore North Sumatra back to its peak production of around 7,000 barrels of oil per day.

Medco director Rashid I. Mangunkusumo told Petromindo.Com recently that the investment would be used to drill new production well as well to conduct re-entry drillings.

“We hope to get Langsa back to its former peak production by the end of 2004,’ said Rashid.

Rashid said Medco and its partner Japanese firm Mitsui Group had closed deal to acquire Langsa block from troubled Australian oil company Matrix Oil NL. Matrix had 90 percent working interest in the block.

Rashid said Medco and Mitsui will hold 35 percent working interest each in Langsa TAC, with Houston-based FPSO supplier Modec International, where Mitsui also has an interest, holding 20 percent working interest.

Matrix was forced to close down oil production from Langsa TAC in October 2002 due to technical troubles. Matrix was unable to raise necessary funds needed to repair the oil wells, and was forced to sell its interest in Langsa TAC and in two other exploration blocks offshore North Sumatra, namely Glagah Kambuna TAC and Asahan PSC.

Matrix commenced north Sumatra production in November 2001 with peak production of 7,000 BPD.

Langsa TAC has 33 million barrels of proven and probable oil. (Alex)