Release: MedcoEnergi steps forward on Senoro gas

Jakarta, 13 June, 2005 ? In line with its strategic objective to develop market for uncommitted gas reserves, PT Medco Energi International Tbk (the ?Company?/?MedcoEnergi?), through its PSC JOB Pertamina Medco E&P Tomori Sulawesi, will undertake a feasibility study in the format of Exclusivity Agreement toward a potential selling of its proven gas reserves from Senoro Gas Field, at Luwuk, Central Sulawesi to LNG International Pty Ltd (?LNGI?), an Australian listed company in the Australian Stock Exchange engaged in Liquid Natural Gas business in various countries in the world, and its partners (together to be referred as ?LNGI Group?). Such Exclusivity Agreement was signed on Wednesday June 8th 2005 for the period of 4 months.

The gas would be used for the proposed development of a 700,000 tonnes per year liquefied natural gas (LNG) production plant (?Mini LNG Plant?), which will be built by the LNGI and its partners, located on the coast near the town of Luwuk and the onshore Senoro gas field. The Mini LNG Plant is expected to be completed by the end of 2007.

MedcoEnergi is confident that with the approval of the Indonesian Government Authorities, Gas Sales Agreement would be in place for the supply of 120 MMSCFD. This Gas Sales Agreement in turn would significantly support the Government of Indonesia (?GOI?) in generating revenues in Central Sulawesi and would also attract Foreign Direct Investment to Indonesia since LNGI Group will establish a PMA company to build this Mini LNG Plant.

The gas reserves of Senoro Gas Field have been certified by Gaffney Cline & Associate dated January 17, 2003. In addition, to prove-up gas reserves of Senoro Gas field, MedcoEnergi has planned to drill two more appraisal wells by the fourth quarter 2005 and first quarter 2006. The total capital expenditures in developing Senoro Gas field under the approved Plan of Development are approximately US$ 240 million.

As a leading domestic energy company, MedcoEnergi thru its business activities might contribute to the stakeholders by participating in developing the quality of life of the local community. (end of release)