Medco to develop Banggai gas field in 2002

PT Medco Corporation will start the development of its gas field in Banggai Daratan regency in Central Sulwesi and will sell part of its natural gas production to Inco nickel mining company in South Sulawesi, according to an executive of the Batui industrial bonded zone in the province.

Firdaus Abdullah, the director of the industrial bonded zone, told Tempo Interaktif that Helmi Panigoro, an executive of PT Medco Corporation recently met senior officials at the Banggai Daratan regency to talk about the preparation of the gas field development.

He said that Medco, which acquired the gas field from Arco, which bought it from Union Texas, would soon prepare the pipeline project to supply its gas production to Inco. The construction of the pipeline would cost the company about Rp 70 billion (1US$=Rp 7,800), he added.

Medco would develop the oil field, which is estimated to have 1.5 trillion cubic foot gas reserve, a under 20-year production contract with Pertamina, he said. (*)