Medco returns operatorship of Sembakung to Pertamina EP

PT Medco E&P, a subsidiary of IDX-listed energy firm PT Medco Energi Internasional Tbk, hands over today the operatorship of the Sembakung oil field in Nunukan Regency, North Kalimantan, to PT Pertamina EP as its 20-year technical assistance contract (TAC) over the field expired.

Medco E&P said in a statement that it has managed the Sembakung field since 2005, and that various progresses have been achieved both in terms of operation, production, and environmental management.

The Sembakung field was founded by Arco and started production in the 1970s. Medco has succeeded in increasing production at the aging field to peak at 3,000 bpd in 2011 through the opening of new zones, optimization of existing facilities, and by applying Medco?s experience in operating mature fields.

Toward the end of the TAC, Medco has managed to distribute gas to fire up a local 8 MW power plant owned by state-owned electricity firm PLN, supplying electricity to communities in the Nunukan and Sebatik border area.

Editing by Reiner Simanjuntak