Release: MedcoEnergi: Signed gas sales agreement in Oman

(Jakarta, February 15, 2005)PT Medco Energi Internasional Tbk is pleased to announce that through Novus Oman Ltd (Novus Oman), a wholly owned subsidiary of MedcoEnergi, had signed a Gas Sales Agreement with Ras Al Khaimah?s Gas Commission to purchase gas from the Company?s Oman?s West Bukha field within Block 8, where Medco Energi holds 40% interest in the block.

MedcoEnergi, along with partners LG International Corporation, Heritage Oil and Gas and the Government of Oman, plans to drill a development well in the West Bukha structure this year.

In Oman, MedcoEnergi, through Novus Oman, currently holds interests in 5 blocks; Block 8, Block 17, Block 47, Block 31 and Onshore RAK Block. The West Bukha field is located on the maritime border of Oman and Iran.

The field was discovered in 1976 but remained undeveloped.

The Company recently received consent from both the Omani and Iranian governments to develop the Omani side of the field on a standalone basis.

Previously, Novus Oman also held Block 15. Due to certain reason, the Government of Oman, through its letter Number 3/15/2073/2004 dated September 26, 2004, confirmed that it could not accept Novus Oman?s proposal in respect to Block 15 and declared that the block was to be relinquished as stipulated in the Exploration and Production Sharing Agreement. (end of release)