Government Extend Contract Blok A

Government Extend Contract Blok A


After the contract period ends, the Government extended the contract to ensure cooperation (KKS) Blok A, Aceh operated PT Medco E & P Indonesia, said Hulu Chief Executive Board of Oil and Gas (BP Migas) R Priyono in Jakarta on Wednesday.

According to him, some "term and condition" that is still discussed among other problems for the results, cutting production of the first (first tranche petroleum / FTP) pasok and obligations in the country (domestic market obligation / DMO).

About the extension of KKS Mahakam Block, East Kalimantan, Indonesia Total operated, Priyono said, the condition is different from the Mahakam block A because most of the shares owned by Indonesia's Medco, while Total foreign owned.

Medco hope this year can get perjanjangan contract until 2011 Blok A gas production so that can be started in 2010.

Medco has signed a gas sale and purchase agreement (PJBG) Blok A with PT Pupuk Iskandar Muda (PIM) to supply as much as 23 trillion British Thermal Unit (TBTU) for nine years beginning in 2010 until 2019.

In addition, Medco also signed PJBG with PT PLN (Persero) to supply 85 TBTU for 15 years beginning the first quarter 2011.

In addition to Medco has a 41.67 percent share, Block A is also owned 41.66 percent of Premier Oil and Japan Petroleum Exploration (Japex) 16.67 percent.