Medco wins Block A from Exxon

PT Medco Energi Internasional Tbk wins the open bidding to acquire 50 percent working interests in gas field Block A offshore East Aceh at the North Sumatra Basin from ExxonMobil.

PT Surya Energi Raya (SER), controlled by media mogul Surya Paloh---an Acehnese, was reportedly competing Medco in acquiring Exxon stakes, but failed to secure financing.

Medco president Hilmi Panigoro said last year that the comapny would invest US$100 million to develop Block A in Aceh should it win the tenders to buy the concession from ConocoPhillips and ExxonMobil. Conoco owns another half of the production sharing contract and acts as operator.

Block A has estimated reserves of 450 BCF, but the carbondioxide content is high that will make the development cost expensive. Medco estimated that the area would be able to produce some 100 million standard cubic feet per day (mmscfd) at peak production.

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