Ministry set to extend Lematang block contract
Friday, April 1 2016 - 05:10 AM WIB
Director General of Oil and Gas at the Ministry of Energy and Mineral Resources IGN Wiratmaja Puja said the ministry will soon approve a request for an extension of the Lematang Block contract in South Sumatra operated by PT Medco E&P Indonesia, a subsidiary of IDX-listed PT Medco Energi Internasional Tbk.
Bisnis Indonesia quoted Wiratmaja as saying that the government would extend the existing contract, which expires in 2017, as state owned oil and gas firm PT Pertamina has no interest to takeover the block.
President Director of Medco Energi Hilmi Panigoro acknowledged Thursday that Medco has applied for the contract extension, but has yet to get response from the ministry.
He said that Medco aims to maintain production of Lematang Block at 40 bbtud.
Medco, as the operator, holds 51.1 percent interest in Lematang block, while Lundin Lematang BV 25.9 percent and Lematang E&P Ltd 23 percent.(*)