Medco secures FSO lease for Belida field project
Monday, September 11 2017 - 08:00 AM WIB
PT Medco EP Natuna (MEPN) Limited, operator of the South Natuna Sea Block B, has secured a five-year contract with shipping company PT Armada Bumi Pratiwi for the lease of the latter?s floating storage offshore (FSO) vessel to be operated at the Belida field in the block.
?MEPN now holds contract to lease FSO to replace FSO currently operating in Belida field. The winning bidder is PT Armada Bumi Pratiwi Lines,? said Sr. Manager Relations and Security at MEPN Drajat Panjawi told Petromindo.com on Monday.
The Belida field is targeted to start on stream in the fourth quarter of 2018, he added.
Armada Bumi is part of the Soechi shipping group. MEPN is a subsidiary of PT Medco EP, which in turn is a subsidiary of IDX-listed energy company PT Medco Energi Internasional Tbk.
Medco in November of last year completed the acquisition of ConocoPhillips Indonesia Inc Ltd (CIIL) and ConocoPhillips Singapore Operations Pte. Ltd. (CSOP), both of which are subsidiaries of ConocoPhillips (COP). CIIL, which is the operator of the South Natuna Sea Block B PSC with a 40 percent interest, is also the operator of the West Natuna Transportation System (WNTS). CSOP operates an onshore receiving facility in Singapore.
In March of this year, Inpex Corporation announced that it has decided to sell all its shares in Inpex Natuna Ltd., its wholly-owned subsidiary that holds a 35 percent participating interest in South Natuna Sea Block B in Indonesia, to PT Medco Daya Sentosa (Medco), a subsidiary of PT Medco Energi Internasional Tbk.
South Natuna Sea Block B is located 1,200km north of Jakarta, Indonesia in the Natuna Sea where the water depth is approximately 50-55 meters. The average production rate for the Block for the year 2016 was approximately 20,000bbl/d of crude oil, 197MMscf/d of natural sales gas and 6,000bbl/d of LPG. Chevron holds a 25 percent participating interest in the block.
Editing by Reiner Simanjuntak