Medco seeks to extend Sumatra block contract

JSX-listed energy firm Medco Energi Internasional has filed request to extend contract of its South and Central Sumatera Extension PSC by another 20 years.

Loekman Mahfoedz, CEO of Medco E&P said the extension was needed to ensure the company?s investment in the block. ?Medco has commitment to carry out exploration as well as development in the block. We need the contract extension to protect our investment,? he said, adding that the request was filed earlier this month. Medco E&P is an upstream arm of Medco Energi.

According to Medco?s website, the block?s contract will expire in 2013. Medco has 99.99 percent interest in the block. Under the regulation, contractor is eligible to request for contract extension at least 10 years prior to expiration date.

Crude production from the block currently stands around 10,000 BPD and around 75 MMCFD of gas production, which is supplied to fertilizer plant PT.Pupuk Sriwijaya and PLN. (alex)