Medco obtained household and industrial gas network project
This article has been translated by PwC Indonesia as part of our Indonesia Infrastructure News Service. PwC Indonesia has not checked the accuracy of, and accepts no responsibility for the content.
Investor Daily - Medco raih proyek jaringan gas rumah tangga dan industri
24 June 2024
Jakarta, ID – PT Medco Energi Internasional Tbk (MEDC), through three of its subsidiaries, has secured projects to supply gas for households and industries within the country. On 21 June 2024, these three subsidiaries of MedcoEnergi signed gas sales and purchase agreements (PJBGs) for some of their oil and gas assets.
“The PJBG signing for some of our oil and gas assets is a form of trust from the government to MedcoEnergi. It is also a sign of commitment from the company to maintain national energy security,” MedcoEnergi COO Ronald Gunawan said in his official statement on Friday (21/6/2024).
Ronald explained that PT Medco E&P Tarakan and PT Perusahaan Gas Negara Tbk (PGN) have signed a PJBG to supply gas for households in Tarakan. The gas is produced from Tarakan Working Area under a contract for 982.20 mmscf. The contract is effective from 14 January 2022 until the end of gas production at Tarakan Working Area or the termination of Tarakan PSC.
Next, he said that Medco Energi Madura Offshore Pty. Ltd and PGN have signed a PJBG to sell and purchase gas from the Maleo Field to fulfil the needs of industries in East Java. This addendum is an extension of the Maleo PJBG for 8 tbtu. The contract starts from 1 January 2024 until 3 December 2027.
“Medco Energi Sampang Pty. LTd has signed an addendum PJBG with PT PLN Indonesia Power, which is an extension of the Sampang PJBG. The gas will be sourced from Oyong, Wortel, and Paus Biru fields in Sampang Working Area. The contract is for 30.6 tbtu, starting from 1 September 2022 until 3 December 2027,” Ronald revealed.
Ronald continued that MedcoEnergi would purchase gas to supply its operations through an addendum and restatement of the PJBG between PT Medco E & P Indonesia and PT Pertamina EP. This contract supports oil and gas production at the Pengabuan, Serdang, and Ibul fields in South Sumatra, amounting to 1,751.73 mmscf.
“The contract is effective from 28 November 2013 to 31 December 2030 or until it is fulfilled. This cooperation will potentially reduce CO2 emissions by 1,095 tonnes annually, compared to the use of diesel engines that consume 4,000 litres per day,” he added.
