Medco ties up with Petronas in oil exploration
Wednesday, June 28 2000 - 04:15 AM WIB
Publicly listed PT Medco Energi Internasional will tie up with the Malaysian oil giant Petronas to jointly operate its oil field in the Pasemah block, Sumatera, Mandiri reported.
Medco's corporate secretary Sugiharto said that under the joint operation agreement signed recently, Petronas through its subsidiary Carigali Oveseas Sdn would have a 50 percent interest in the 8,560 kilometer-oil block.
He said that Medco would operate as the main operator of the oil block whose contract will last until 2003 and that the exploration will begin next month.
Medco, partly owned by businessman Arifin Panigoro, took over the oil block in November 1998 from a joint venture between Esso and Mobil oil, which had spent about US$11.4 million on exploration activities.
Sigiharto said that the participation of the Malaysian company in the Pasemah oil block is its first ever project in Indonesia. (*)