Medco transfers back working interest in Rombebai PSC

Publicly listed oil company PT Medco Energi International has transferred back a 60 percent working interest in Rombebai PSC in Papua province to Ramu International LLC, due to elapse of the required drilling time period.

In October 2002, Medco and Ramu signed a farm-in agreement to acquire up to 80 percent of working interest and operatorship in the PSC from Ramu.

The deal dictated Medco to pay 80 percent of working interest on the block by drilling two exploration wells. One of the wells should have been drilled before September 2003.

Medco said in a statement on Thursday that it had planned to combine drilling campaign at Rombebai together with Yapen PSC, which is located adjacent to Rombebai. "Unfortunately, the request to extend the required target date could not be agreed," Medco added.

Rombebai PSC is located onshore of northeast Papua. The block, which was initially awarded in November 1998, is currently an exploration block with gas indication. (Robert)