Indonesia’s Aceh Finally Renews Medco’s Deal

Banda Aceh – Governor of Nanggroe Aceh Darussalam Irwandy Yusuf finally granted contract renewal to PT Medco Energy International Tbk on the gas allocation to PT Pupuk Iskandar Muda.

In fact, the Aceh administration had refused to refresh the contract because it is alleged of causing losses to the country.

“In fact, we’re expecting the central government prepare governmental regulation on oil and gas,” he said today, Feb 15.

However, due to the delayed regulation, he said, the Aceh administration took a shortcut on the contract renewal of the Block A Field in East Aceh Regency.

“In line with the regulation, we renew the contract to 20 years,” said Irwandi.

Therefore, the initial Medco’s contract which should have been terminated in 2011 is made up to 20 years.

Source: Viva News