Medco plans to double ownership in Bangkanai Block

PT Medco Energi Internasional Tbk plans to increase its ownership in the untapped Bangkanai Block at the border of East Kalimantan and Central Kalimantan to 30 percent from 15 percent at present, Investor Daily reported on Tuesday.

Medco Energi's subsidiary PT Medco E&P acquired 15 percent interest in the Bangkanai Block from existing owner PT Mitra Energi Bangkanai in early March this year.

"We are also negotiating for the acquisition of another 15 percent interest from Elnusa to increase our ownership in the block to 30 percent," said Rashid I. Mangunkusumo, the director for business development of Medco.

At present, the Bangkanai oil block is 51 percent owned by Elnusa Bangkanai Energy, 34 percent by Mitra Energi Bangkanai and 15 percent by PT Medco E&P Bangkanai.

The block has Karendan gas field, which was discovered in 1982 by previous operator. The field is estimated to contain about 40 billion cubic feet (BCF) of proven gas reserves. The gas reserves have the potential to be increased up to 190 BCF.

Medco Group is currently proposing to construct a gas-fired power plant using the block?s gas. (*)