Medco suspends EOR program in Rimau block

By Febry Silaban

IDX-listed PT Medco Energi Internasional Tbk has suspended the enhanced oil recovery (EOR) program at Kaji Semoga field, in Rimau Block, South Sumatra, run by subsidiary PT Medco EP Indonesia (MEPI), due to the oil price drop.

Chief Operating Officer (COO) at Medco, Ronald Gunawan told Petromindo.com that if oil price recovers to US$85 per barrel, then his firm will continue the development of EOR technology to improve production at the field.

"EOR program in Kaji Semoga field has yet to be resumed, because it is not economical," Ronald said.

Medco had applied the tertiary technique EOR technology using chemicals (surfactant plus polymers) which were injected into the six wells in the field. Previously, the company had successfully applied the primary and secondary recovery using the water-flooding technique.

Medco has 95 percent stake in Rimau block with the remaining 5 percent held by South Sumatra state firm Perusahaan Daerah Pertambangan & Energy Sumsel.

Editing by Reiner Simanjuntak