Medco to focus on developing existing projects in 2012

IDX-listed oil and gas company PT Medco Energy Tbk said its priority in 2012 will be completing the existing oil and gas projects. However, it does not rule out possibility of acquiring more oil and gas blocks when such opportunities arise.

?We will concentrate on developing the existing oil and gas projects, such as Simenggaris, Block A, Donggi-Senoro and block in Libya,? Director of Medco Energi, Lukman Mahfoedz told Petromindo.com.

Lukman said Medco is currently reviewing Block B and NSO Arun, operated by ExxonMobil. ?We are interested in (acquiring) the block as there would be synergy between the facilities in Block A with the Exxon?s facilities. Therefore, costs will become more effective,? he said.

Separately, Medco Energi said it plans to invest around US$600 million to develop Block A in Rayeuk, East Aceh Regency. Large portion of the funds will come from bank financing, including BNI.

So far, Medco Energy through its subsidiary PT Medco E&P Indonesia has spent $22 million for exploration of the block. ?The construction phase of Block A will begin next year and is scheduled to commence production in 2014,? Eka Satria, Director for Asset Development of Medco E&P Indonesia said.

Eka said gas production from Block A is expected to reach 60 MMSCFD. Portion of the gas production will be sent to PT Pupuk Iskandar Muda's fertilizer plants as well to PT PLN's power plants. (roffie/godang)