Medco to acquire Kangean block

Publicly listed oil and gas company PT Medco Energi Internasional confirms that the company has joined a tender to take over the interest of Anglo-American energy giant BP Plc in the Kangean gas block in East Java, Kontan business weekly reported on Thursday.

“It is true that we are bidding for the Terangsirasun field through a tender process,” Medco’s director Hilmi Panigoro said, adding that the tender which was opened in early January was closed on March 8. “The winner will be announced in mid-April,” he said.

Hilmi, however, declined to unveil how much Medco bid for the gas field. Among of the other bidders are Star Energy and PetroChina.

BP is considering selling assets in Indonesia, including interests in Java oil and gas blocks to focus on the development of its Tangguh gas field in Papua.

The Terangsirasun gas field which is estimated to have 1 TCF of gas reserves is part of BP’s Kangean gas block. BP has asked for an early extension of the contract of the gas block to enable it to further develop the Terangsirasun gas field. The current contract will end in 2010. (*)