PT Medco Energi
International Tbk announced that its subsidiary, Medco Oman LLC (collectively
referred to as “Company”) has signed an Amendment of the Karim Small Fields Agreement
(“KSF Amandment”) with Petroleum Development of Oman (“PDO”) on April 28, 2015.
The signing was done by the Managing Director of the Company, Lukman Mahfoedz,
and witnessed by the Minister of Oil and Gas of Oman, Dr. Mohamed bin Hamad Al
Rumhy, Indonesian Ambassador to Oman, Sukanto, and President Commissioner of
the Company, Hilmi Panigoro.
The KSF Amendment confirms the
change of commercial and technical aspects of the KSF Operation Service
Contract, which had previously been signed by the Company (together with
partners) with PDO in 2006 for a ten-year contract period.
Some new items specified in the KSF
Amendment include, among others, a 25-year additional contract for the Company
(together with partners) to operate the Karim Small Field effective after the
signing of the KSF Amendment, exploration program for the drilling of three
wells in the first two years, profit-sharing scheme determined by cost of
production where this scheme determined by cost of production where this scheme
will provide a better economic value to the contractor, and the provision of
incentives for the discovery of oil and gas based on the amount of resources or
oil and gas reserves found.
As operator in the Karim Small
Fields, the Company controls 51% stake. While, Kuwait Energy Company (KEC) and
two local partners, and Oman oil Company Exploration & Production (OOCEP)
have the rest. Since its operation in 2007, the Company has successfully double
the Karim Small Fields oil production so it reached its peak production of over
22,000 barrels of oil per day (BOPD) in 2012, with total number of development
wells that have been drilled to date reaching more than 250. Currently, the
average volume of oil production is 17,000 BOPD.
Lukman Mahfoeds, President Director
of MedcoEnergi said, “We are delighted with the new KSF contract, with a better
commercial value as well as greater opportunities for exploration to find new
hydrocarbon sources. The 25-year extension of the contract is a proof of
success of MedcoEnergi in operating the
KSF field by doubling oil production in the last 9 years. MedcoEnergi will
continue to strengthen cooperation with the Government of Oman and PDO in the
next 25 years to increase oil production through exploration activities in
order to discover new oil and gas reserves and to increase oil production
through exploration activities in order to discover new oil and gas reserves
and to maintain safety in its operations. “Lukman closed his statement with,”
Our operations team in Oman, which currently consisted of over 80% of Oman
residents, has worked extensively in enhancing the operational value of
MedcoEnergi in the international arena and has supported the Company’s business
strategy in strengthening the portfolio of production assets. In the future, we
will increase employment opportunities for local workers, not only in Oman but
also in our other operation areas globally.
MedcoEnergi is a public-listed
integrated energy company with a focus on exploration and production of oil and
gas. MedcoEnergi has operations in Indonesia, including nine oil and blocks and
has economic participation in an exploration field. MedcoEnergi’s overseas
operations are in Libya, Oman, Papua New Guinea, Tunisia, Yemen and the Gulf of
Mexico in the United States. In addition, MedcoEnergi also operates several gas
and steam power plants to supply electricity to PLN (States Electricity
Company) and has a coal mining business unit as well as gas distribution unit.
This documents contains financial
condition, result of operations, projection, plans, strategies, policies and
specific objectives of the Company, which can be classified as a
forward-looking statement in the sense of the applicable legislation.
Forward-looking statement basically involves risks and uncertainties that could
cause actual results and developments which materially differ from the implied
or stated statements. The Company does not guarantee that all the actions that
have been taken to ensure the validity of this documents will bring certain
results as expected. (E)
Business New - May 6, 2015
No comments:
Post a Comment