Medco to sell Aceh gas to PIM, PLN

JSX-listed energy firm Medco Energi Internasional Tbk. Said on Tuesday it would sell gas from Aceh Block A gas block to fertilizer firm PT.Pupuk Iskandar Muda (PIM) and state electricity firm PLN, a company official said.

Budi Basuki, Director of Medco EP, which is Medco?s upstream unit, said that under the Plan of Development (PoD) which had been submitted to BPMIGAS last week, the block would be able to produce 125 MMCFD of gas.

?Some 100-110 MMCFD would be supplied to PLN and the rest to PLN,? he said, adding that talks with both parties are currently ongoing.

Medco EP CEO Lukman Mahfoedz in July 2007 said the block?s partnership would US$500 million to develop the gas field, which would expected to commence production in 2010. The PoD would come with proposal to extend the block?s contract by another 20 years to 2031.

Medco and partners will receive 49 percent production split from the block, higher than the rate of 30 percent normally given to standard PSC contractors.

The block is operated by Medco with a 41.67 percent interest. Other participants are Japex (16.67 percent) and Premier Oil (41.67 percent).(godang)