Medco to begin drilling activities at Tarakan gas block next year

PT Medco E&P Indonesian is scheduled to begin drilling activities (work over) at the company's Tarakan gas block, East Kalimantan in January, next year, an executive of the company said on Tuesday.

The head for the company's operation in Tarakan, Tony Matindas, said the drilling activities would be carried out on at least 24 wells in the oil block. "Seismic surveys are now underway as the preparation for the exploration activities. We hoped the seismic survey could be completed in October this year so that the drilling activities could be begun in January as scheduled," he added.

Tony said that the gas to be produced from the Tarakan block would be sold to the local government in Tarakan. "Medco and Tarakan government will sign the memorandum of understanding on the sale of the gas on Wednesday, this week," he added.

He said that Medco E&P would allocate about Rp 950 million in 2006 to finance community development projects for the people living around the Tarakan block. "The community development for next year would be larger than Rp 650 million allocated for this year," he added.(godang)