Medco ready to replace ExxonMobil in Natuna Block

JSX-listed energy firm PT Medco Energi International (Medco) has expressed its strong interest to operate and develop Natuna D-Alpha Block replacing US-based ExxonMobil whose contract will end in January 2007.

Medco?s chief commissioner Arifin Panigoro said in Jakarta Tuesday that the company was ready to buy the technology for drilling gas with hydrocarbon deposit. ?We have a strong interest, the technology can be bought, we have already sent a formal letter to the government in regards to our interest,? Arifin was quoted by Investor Daily as saying.

According to Arifin, huge funds will be needed to develop Natuna D-Alpha Block and the required funds might be bigger than US$350 million that had been spent by ExxonMobil Oil Indonesia (EMOI). ?We are not alone in this regards, we will seek it (funds from other sources). It (the development of the Natuna D Alpha Block) will be carried out in stages. Based on our experience, we are ready (to develop oil and gas) anywhere,? he said.

Arifin said that Natuna output would be sold mostly at home to fulfill domestic consumption need. ?The outputs will be sold to both overseas and at home but bigger portion will be sold at home,? he said, adding that domestic market for gas was highly promising in the near future.

ExxonMobil owns 76 percent stake in the field and the remainder owned by state oil and gas company Pertamina. (*)