Medco teams up with International firms to tap CBM potential

Medco E&P Indonesia, an upstream unit of IDX-listed energy firm PT Medco Energy Internasional Tbk, said it was teaming up with US oil firm Marathon Oil, Anglo-Dutch firm Shell and Australian coal-bed methane (CBM) developer Arrow Energy to develop coal-bed methane potential in its oil, gas concessions.

CBM Director Pudjo Suwarno told Petromindo.Com that Medco will cooperate with the companies to develop CBM potential within its oil, gas concessions in South Sumatra and East Kalimantan.

Pudjo said Medco as new CBM player will need expertise from the three companies and also to share risks.

Arrow and Medco had on February signed a Heads of Agreement to jointly explore for and develop coal bed methane over Medco?s 1,889 square kilometer conventional oil and gas PSC working area, the SSE1 Block in South Sumatra.

Under this agreement, both companies will jointly work towards expeditiously negotiating a CBM PSC with the Indonesian regulatory authorities aimed at commencing exploration operations as soon as possible.

Medco, teaming up with Indonesian company PT Energi Pasir Hitam Indonesia and Canadian firm McLaren Resources, had been granted Sekayu CBM block onshore South Sumatra.(godang)