Medco suspends operation of Gulf of Mexico field
Wednesday, July 22 2015 - 02:01 AM WIB
IDX-listed PT Medco Energi Internasional Tbk has suspended the operation of its East Cameron gas concession in the Gulf of Mexico, the U.S. due to its deteriorating economics as a result of the sharp decline in oil prices.
However, the firm still maintains operation at its Main Pass oil concession, located in the same area.
?We are focused on assets which are still good economically and have good exploration potentials,? President Director Lukman Mahfoedz told Petromindo com.
The East Cameron concession covers more than 60 sq km area offshore Lousiana State. The acreage has three blocks, namely 316, 317 and 318 blocks. Medco through Medco Energi US LLC, the operator, has 75 percent interest (in partnership with Northstar Offshore Group LLC) in 317 and 318 blocks and 100 percent interest in 316 block. The company holds Lease Agreements over 317 and 318 blocks, through the 100% acquisition of Novus Petroleum Ltd. in 2004. The blocks produce natural gas that is fed into the nearest gas pipeline.
Medco also has 75 percent interest in the 64 and 65 blocks of Main Pass acreage, covering 28.4 sq km, in partnership with Northstar which holds the remaining shares.
Editing by Johannes Simbolon