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il giant PT Medco Energi International (MEDC) signed a contract amendment to its Karim Small Fields (KSF) agreement with Petroleum Development of Oman (PDO) on Tuesday, granting Medco'€™s subsidiary 25 years to operate Oman'€™s Karim Small Fields oil field.

The agreement was originally signed by Medco and its subsidiary, Medco Oman LLC'€™s, with Petroleum Development of Oman in 2006 for a period of 10 years.

Medco Oman LLC president director Lukman Mahfoedz said the new KSF amendment would boost opportunities to find new hydrocarbon.

Aspects added to the agreement were the exploration for three new wells during the first two years, a new profit-sharing plan that is more beneficial to the contractor and incentive based on the amount of reserves found in newly discovered oil and gas wells.

Medco Oman LLC as KSF operator will hold 51 percent of shares while the remaining shares will controlled by Kuwait Energy Company (KEC), Oman Oil Company Exploration and Production (OOCEP) and two local partners.

The company has been operating the oil field since 2007 and hit maximum production of 22,000 barrel of oil per day (bpod) in 2012. The company currently exploits 250 oil wells with an average production of 17,000 barrel per day.

The contract amendment was signed by PDO managing director Raoul Restucci and Medco Oman LLC president director Lukman Mahfoedz in the presence of Omani Oil and Gas Minister Mohamed bin Hamad Al Rumhy, Indonesian Ambassador to Oman Sukanto and Medco Oman LLC president commissioner Hilmi Panigoro.