Medco targets gas delivery of Block A in 2017
Tuesday, August 11 2015 - 01:10 AM WIB
IDX-listed PT Medco Energi Internasional Tbk, through its subsidiary PT Medco E&P Malaka, is planning to deliver gas from Block A PSC in Aceh to state owned oil and gas firm PT Pertamina (Persero) starting in November 2017, according to a top official of the firm.
?We are still waiting for approval from SKK Migas (upstream authority) for the EPC (Engineering, Procurement, and Construction) works at the field, because we are targeting to start delivering the gas in November 2017,? Medco?s President Director Lukman Mahfoedz told Petromindo.com.
Lukman said the firm?s ability to bring the block into production should be considered a breakthrough in view of the fact that it is located in a very remote area and the gas has a high H2S content.
Last January, Medco signed a Gas Sales and Purchasing Agreement (GSPA) with state owned oil and gas firm PT Pertamina (Persero) on future gas supplies from Block A. Total volume of gas to be supplied under the GSPA is 200 trillion British thermal unit (tbtu) worth US$2 billion with a period of 13 years.
The gas from Block A will be channeled by Pertamina to meet the gas needs of Aceh and North Sumatra provinces. The total volume is 198 tbtu with daily supply amounting to 78 bbtu. The price is set at $9.45 per mmbtu at tie-in point of the Arun-Belawan gas pipeline. Arun is located in Aceh, while Belawan is the main port in North Sumatra.
Block A is 41.67 percent controlled by Medco (operator), 41.66 percent by KrisEnergy and 16.6 percent by Japex.
Editing by Johannes Simbolon