Medco, PIM in gas supply talks
Monday, May 14 2007 - 09:51 AM WIB
JSX-listed energy firm Medco Energy Internasional Tbk. said it has signed MoU to sell gas from Block A PSC in Aceh to fertilizer maker PT.Pupuk Iskandar Muda (PIM).
Medco Director Rashid Mangunkusumo told Petromindo.Com on Monday that Heads of Agreement (HoA) on is expected to be signed in June, followed by Gas Sales Agreement (GSA) a few months after.
Rashid said Medco and PIM will hold intensive negotiations terms and conditions, including the volume and price of gas, to conclude the deal. Rashid hinted that the entire gas production from Block A would be sold to PIM, which is in desperate need of gas after supply from ExxonMobil’s gas fields dwindled due to reserves depletion.
Medco E&P Indonesia CEO Lukman Mahfoedz told Petromindo.Com in an earlier interview that the block would commence gas delivery in mid-2010 with estimated gas flow of 110 MMCFD with further upside potential. Medco E&P is a unit of Medco.
The block is operated by Medco with 41.67 percent interest. Other participants are Japex and (41.67 percent) and Premier Oil (16.67 percent). Contractors would get 49 percent gas split from the block.(alex)