Release: MedcoEnergi: Signed an Exploration Joint Venture Agreement with Anadarko Petroleum Corporation
Tuesday, July 26 2005 - 12:15 PM WIB
The Agreement is intended to intensify exploration activities in most of MedcoEnergi?s existing acreage in Indonesia covering approximately 31,565 square kilometers in onshore and offshore Sumatra, Kalimantan, Sulawesi, Java and Papua.
The Agreement will be effective for three (3) years and will take into effect after both parties have met all the conditions stipulated in the Agreement which will be at the latest by August 12, 2005.
For a three-year period, MedcoEnergi and Anadarko will jointly develop exploration programs covering the Seismic, Geological & Geophysical, and Exploration Drilling with Anadarko to fund activities at a cost of US$ 80 Million over the three-year period.
Furthermore, this transaction will not affect the Company?s status as Operator on the existing blocks, which upon successful of new discovery, MedcoEnergi has economic right of 60% and Anadarko will earn up to 40% from MedcoEnergi?s right in the production sharing contract.
?The agreement which only affects the new field wildcat will build on MedcoEnergi?s strong operating position as one of the leading oil and gas players in Indonesia?, MedcoEnergi?s Chief Corporate Growth, Mr. Rashid Mangunkusumo said today.
?This transaction is an excellent opportunity to increase Reserve Replacement which is good for both the Company and country,? he said.
John Harkins, Vice President of Anadarko International Energy Company mentioned that ?this agreement represents an excellent opportunity to explore hydrocarbons in proven productive basins and we hope that there could be significant untapped potential reserves in these E&P blocks.?
The key benefit for MedcoEnergi in this joint venture is in risk sharing of the exploration activities in our oil and gas assets. In addition, this allows MedcoEnergi to finance other projects in the country to further boost the Company?s growth. (end of release)