Medco still operator in Bengara block

Publicly-listed energy firm PT Medco Energi International will remain the operator of the Bengara block in East Kalimantan after Thai firm PTTEP buys a 40 percent stake in the concession.

Edi Bambang Setyobudi, operation director of PT Medco E&P Indonesia, said on Monday that once PTTEP formally carried out the acquisition, Medco?s stake in the concession would decline to 55 percent from 95 percent.

PTTEP earlier said it had formed two Indonesian units to carry out petroleum exploration and development activities in Bengara.

The other shareholder is Satria Energindo, which holds a 5 percent stake.

Edi also said Medco planned to drill an exploration well in Bengara, called Tiram, around Dec. this year.

If the drilling was successful, the firm would continue to drill another well, called Sebuku, Edi said. (Alex)