Medco wins three Gulf of Mexico blocks

JSX-listed oil firm PT Medco Energi Internasional Tbk announced Tuesday its wholly-owned subsidiary, Medco US LLC, had won three new leases, namely Block 435, 492 and 514, located at the Brazos Area in the Western Gulf of Mexico, offshore Texas.

The lease sale was conducted by the U.S. Department of the Interior?s Minerals Management Service through the Western Gulf of Mexico Lease Sale 200.

Medco said the cost incurred for the 17,280 net acres (5,760 acres each) covered by these blocks is $796,522.

The blocks are located in water depths of 65 to 80 feet in the Gulf of Mexico.

Medco said each lease carries a five year primary term in which to establish commerciality and a perpetual term for the life of production once production is established.

Medco US owns a 100 percent working interest in each of the blocks which are all subject to a 16.67 percent royalty in favor of the United States government, Medco added. (Robert)