Release: Medco signs three gas sales purchase agreement with total value of more than $900m

(JAKARTA. April 14th, 2008)--PT. Medco Energi Internasional Tbk (MedcoEnergi) through its wholly owned subsidiary, PT Medco E&P Indonesia (Medco E&P) as the operators of Block A in Nanggroe Aceh Darussalam (NAD) and South Sumatra Extension (SSE) (all together block called as company) has signed Gas Sales Purchase Agreements (GSPA) with PT. Perusahaan Listrik Negara (PLN). In addition, MedcoEnergi through JOB Pertamina-PetroChina (JOB), as the operator of the Tuban block, where the company owns a 25 % stake in the block, also signs a GSPA with PT Petro Kimia Gresik (PKG) in East Java.

The Company will supply gas from block A in NAD a total of 85 TBTU to PLN (east Aceh) for a period of 17 years commencing in 2010. The total gas sales originating from Alur Rambong, Alur Siwah and Julu Rayeu fields is estimated to be US$565.99 million.

In addition, from its SSE block, the Company will supply a total of 71.61 TBTU of gas for six years, to PLN?s Pusat Listrik Keramasan, South Sumatra staring in 2008 and to the delivery point of PGN?s Pagardewa. South Sumatra with the signing of the amendment of the agreement has increased by US$103.83 million from the previous GSPA, which now becomes US$320.93 million.

From Tuban block?s Lengowangi field, JOB will be supplying a total of 6.0 TBTU of gas to PKG in East Java from 2009 until 2011 with estimated total gas sales value of US$30.25 million.

Lukman Mahfoedz, President Director of Medco E&P, says ?The total contract value of one contract amendment and two new gas sales agreements is US$917.17 million,?.

?This signing further marks Medco E&P?s continued commitment for the national energy policy in supporting the domestic industry,? adds Lukman.

Rashid I Mangunkusumo, MedcoEnergi?s Director of Coroprate Grouth, further says ?The company has been assisting in ensuring the availability of gas supply for various industries in Indonesia such as fertilizers, chemicals and electricity?. (end of release)