REPUBLIKA.CO.ID, PALEMBANG -- Publicly traded energy company PT Medco Energi Internasional said its subsidiary in Oman, Medco Oman LLC has been granted an extension of 25 years for its oil contract in that Mideast country.
The largest privately owned Indonesian oil company said the contract extension for the Karim Small Fields (KSF) was signed with Petroleum Development of Oman on 28 April 2015.
Signing the agreement were Managing Director of PDO Raoul Restucci and Medco president director Lukman Mahfoedz witnessed by Oman Oil and Gas Minister Dr Mohamed bin Hamad Al Rumhy, Indonesian Ambassador Sukanto and chief commissioner of Medco Hilmi Panigoro.
Under the new contract, Medco would carry out drilling of three wells for explorations.
Medco Oman LLC would be the operators of the Karim Small Fields as a 52 percent shareholder.
The remaining 48 percent of the shares are split between Kuwait Energy Company (KEC) and two local partners and Oman Oil Company Exploration & Production (OOCEP).
Medco Oman LLC started operation in 2007 doubling the oil production from Karim Small Fields with peak production exceeding 22,000 barrels of oil per day in 2012.
The company has so far drilled and developed more than 250 wells. Currently its oil production averages 17,000 barrels per day.
Medco Energi President Director Lukman Mahfoedz said he was pleased with the contract extension allowing his company greater opportunity for explorations for new hydrocarbon reserves.
The extension of the contract shows that Medco Energi has been successful in its operation of KSF by doubling its productivity in the past nine years, he said.
Medco Energi will continue to strengthen cooperation with the government of Oman and PDO in the next 25 years to increase that country's oil production, by carrying out more explorations to find new oil reserves, he said.
"Local people make up 80 percent of our team of operators in Oman ," he said, adding more more jobs would be open for local workers.
Medco Energi also has oil stakes in Libya, Papua New Guinea , Tunisia, Yaman and the Mexican Gulf in addition to a number of oil fields in Indonesia.
It also operates a number of gas-fired and steam powered electric plants supplying power to state power utility PLN.
It also has stake in coal mines in the country.
One big project of Medco Energi in Indonesia is the Donggi-Senoro gas project in Central Sulawesi.
The project includes gas production from Senoro and an liquefied natural gas plant in Donggi that will use gas from Senorto.
Lukman Mahfoedz said earlier the project had been 98 percent completed and it is expected to be operational in the middle of this year.
The LNG project, which costs around US$2.8 billion is jointly owned with Mitsubishi Corporation, South Korea's Kogas, and state-owned oil and gas company Pertamina.
Medco also has a gas block in Aceh supplying gas to Pertamina under a 13 year contract.
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