Medco starts to operate oil field in Oman

JSX-listed PT Medco Energi International Tbk said its subsidiary Medco LLC has started developing Karim oil field in Oman following an agreement reached by the company and state-controlled Petroleum Development Oman (PDO).

Medco said in a report to the Jakarta Stock Exchange on Wednesday that Medco LLC and PDO signed a service contract, the first ever contract signed by the company, which was included in the Karim Small Field Service Agreement on March 20, 2006.

Under the agreement, both Medco LLC will develop a cluster comprising 18 fields in Nimr-Karim in the southern part of Oman.

Medco LLC will team up with Oman Oil Company SAOC (OOC) with the former controlling 75 percent participating interest in the project and OOC owning the remainder.

Medco's President Director Hilmi Panigoro said, "the trust that we have received from OOC and PDO to operate Karim oil field will serve as a 'stepping stone' for Medco to strengthen its existence in the Middle East."

Medco LLC is a private company established under the Oman Sultanate law. Medco owns majority shares, with special business of operating the Karim oil field. (denny)