Medco signs agreement with Shell to study CBM

Medco E&P Indonesia, the upstream unit of Indonesian stock exchange-listed energy firm PT Medco Energi Internasional, has signed a memorandum of understanding (MoU) with PT Shell Indonesia to study the possibility of developing coal bed methane (CBM) resources in South Sumatra.

President Director Medco E&P Lukman Mahfoedz said on Monday the MoU was signed on Friday with the Indonesian subsidiary of Anglo-Dutch oil firm Royal Dutch/Shell

?The MoU aims to jointly study the possibility of CBM resources in Lematang block,? he told to Petromindo.Com on Monday. He did not provide more details.

Shell Indonesia?s officials, including Vice president for External Affairs and Business Development Wally Saleh, were not available to comment when contacted by phone. .

Medco has 74.12 percent in Lematang oil and gas block in South Sumatra with Swedish firm Lundin Petroleum having the rest. (Godang)