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View all search resultsMedco to continue operations in Rimau under gross split
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A woman walks through the Medco Energi office in Jakarta. (Kontan/Cheppy A. Muchlis)
T
he government announced on Thursday that energy company PT Medco E&P Rimau would extend the operation contract of the Rimau Block in South Sumatra until 2043 under the gross split scheme.
Medco E&P Rimau is a subsidiary of oil and gas firm PT Medco Energi Internasional.
Energy and Mineral Resources Deputy Minister Arcandra Tahar said at a press conference that the investment commitment was set at US$41.33 million for five-years from 2023, while the signature bonus was agreed at $4 million.
“The average oil production in the block is 8,200 barrels of oil per day (bopd) and the gas production is at 3.67 million metric standard cubic feet per day [mmscfd],” he said recently, adding that from the total production, Medco E&P Rimau would get 53 percent for oil and 58 percent for gas.
Under the new contract, the company has a chance to hold 10 percent of participating interest (PI) in the block as stipulated in Energy and Mineral Resources Ministerial Regulation No. 37/2016 on participating interest of offerings in oil and gas blocks.
The Rimau block is the latest oil and gas block’s contract under the gross split scheme announced by the government. As of Thursday, there has been 36 blocks, including the 21 ready-to-produce units that would be managed under the new scheme from old contract of work scheme. (bbn)
