Medco Interested in Aceh Block

Jakarta – PT Medco Energi Internasional President Director Loekman A. Mahfoedz expressed his company’s interest in buying the shares belonging to ExxonMobil’s subsidiary company, which engaged in gas production in Aceh.

“Medco is interested for [the block’s] future particularly with the activities in Arun’s Block A,” said Mahfoedz, contacted by TEMPO yesterday. Furthermore, Mahfoedz expected government’s support for Medco as a national company to manage the block which was once belonged to Exxon. However, Mahfoedz said that he has yet to receive the price list from Exxon. “So, we are still unable to calculate the economic value,” said the president director.

Exxon owned three onshore gas fields under two profit sharing contracts (PSC) in Aceh: Arun’s Block B, South Lhoksukon (SLS) A and D, and one offshore gas field, North Sumatra Offshore (NSO) A. The company sold 100 percent of the Arun B and NSO A blocks—both supplied gas to be processed into liquid natural gas at the PT Arun NGL refinery which product was sold to Korea and Japan. Exxon will also let go 30 percent of the company’s shares in Arun.