Medco plans to amend Sekayu CBM block commercialization terms

By Godang Sitompul

PT Medco EP Indonesia is seeking government approval to amend the contract terms of the development of coal bed methane (CBM) in the Sekayu block, South Sumatera, in order to allow the company to commercialize the CBM extracted during the dewatering process.

?PT Medco EP Indonesia proposes an amendment to the government over the contract terms on commercialization of the Sekayu CBM PSC during the stage of dewatering process,? spokesperson of PT Medco EP Indonesia, Joang Laksono, told Petromindo.com. ?The existing contract terms do not allow for commercialization of the block during the dewatering stage. We want to amend it,? he said.

Medco is the operator of the Sekayu CBM PSC where it holds a 50 percent participating interest. The remaining 50 percent is controlled by partner South Sumatra Energy Inc (SSE Inc).

At present, Medco operates two CBM blocks, Sekayu CBM and Lematang CBM. In addition, the company is a partner in the CBM Muralim block in South Sumatra operated by Dart Energy.

Editing Roffie Kurniawan