Medco signs an agreement on Muralim exploration

JAKARTA: PT Medco Energy International Tbk, an oil and gas giant owned by Panigoro family, has signed a working agreement on development of coal bed methane (CBM) at Muralim Block, South Sumatra.President Director of Medco Energy Darmoyo Doyoatmojo said the consortium of Medco CBM including PT Medco CBM Pendopo and Dart Energy Pte Pte has signed the EPC contract (engineering, procurement, and construction) on December 3."Based on the joint evaluation, resources are approximately 2.27 TCF in the region," he said in an information disclosure submitted to the Indonesia Stock Exchange in Jakarta last night.Darmoyo said development of CBM will require 30 years in which the first 3 years will be to realize the consortium's commitment to drill core hole, doing exploration, dewatering and production testing. That process will cost US$4.6 million.He also said the agreement signing gives assurance to the company. "This agreement provides certainty to the company to sustain our business," he said.(T03/NOM)