Medco to return Kalimantan oil, gas field to Pertamina

By Alexander Ginting

IDX-listed energy company PT Medco Energi Internasional Tbk will return Sembakung Technical Assistance Contract (TAC) block onshore East Kalimantan to PT Pertamina EP this year when the contract expires.

Sembakung TAC is an oil, gas producing field.

Under the TAC system, Pertamina EP gives right to a contractor to operate a certain oil, gas block until the contract expires.

COO Frila B. Yaman in a document filed with the IDX on Wednesday did not give details.

Medco acquired 100 percent interest in the block in 2005 with 2010 production of 695,000 BOE.

As at end 2010, this block had 1P reserves of 2,013 MBOE and 2P reserves of 2,412 MBOE.

Earlier last month, government also decided not to extend production sharing contract of Medco-operated Kampar block onshore Riau.

Editing by Johannes Simbolon