Medco signs agreement to develop oil, gas blocks in Yemen

IDX-listed energy firm PT Medco Energi Internasional Tbk through its wholly owned subsidiary Medco Yemen and its foreign partners have signed a production sharing agreement with the Yameni government to develop two oil and gas blocks in the country.

MedcoEnergi said on Friday that the subsdiary and its partners including Kuwait Energy Company, Indian Oil Corporation Limited, Oil India Limited and Yemen General Corporation for Oil and Gas (YGCO) would develop the country's Block 82 (Wadi Amed) and Block 83 (Wadi Arat) under the production sharing agreement (PSA) signed with the Yameni government recently.

The PSA will be effective soon after it gets approval from the Parliament of Yemen -- a process which is expected to take three months, Medco said in a statement.

In December 2006, Yemen's Ministry of Oil and Mineral declared Medco Yemen and its partners as the winner of the tender for the two blocks which are located in Sabwah and Seiyun, respectively.

Medco Yemen will act as the operator for the blocks with 38.25 percent interest, Kuwait Energy (21.25 %), Indian Oil (12.75 %), Oil India (12.75 %) and YGCO (15.0 %). (denny)