Page 16 - Oil&Gas-AustralAsia-2015-Issue-2
P. 16
I NDONESIA
MedcoEnergi in $600m deal
with Oman
By Marie RYAN
be drilled - but should then increase by
US$80-130 million per year depending
on variables such as the production
target and budget.
PDO Managing Director Raoul Restuc-
ci said the signing represents a new way
of working between PDO and Med-
coEnergi.
“With our current agreement being
amended to create a true business alli-
ance, Mr Restucci said.
“What we are doing is leveraging the
fundamental strengths of both parties
and moving towards a deeper, stronger
partnership to deliver long-term value
for PDO and Oman,” he said.
Indonesia’s MedcoEnergi has signed a The extension of the production sharing “The purpose of this contract is to
US$600 million deal with Petroleum service agreement contract was signed maximise, in a safe and sustainable way,
Development Oman (PDO) to carry at an official ceremony at Mina Al Fa- production from the KSF cluster, using
on developing the Karim Small Fields hal, under the auspices of His Excellen- the resources of MedcoEnergi.
project in Oman. cy Dr Mohamed bin Hamad Al Rumhy, “In the current tough volatile oil price
The deal has been described by PDO as Minister of Oil and Gas and Chairman environment, MedcoEnergi has shown
very significant, running until 2040 and of the PDO Board of Directors. itself to be fully committed to continue
building on existing contracts that have The event was attended by His Ex- delivering value in an efficient way with
been in place for the past nine years. cellency Sukanto, Ambassador of the the guarantee of significant investment,
MedcoEnergi has been working closely Republic of Indonesia in Oman, His further support for In-Country Value
with PDO on the project to maximise Excellency Dr Alawi Shihab, Advisor to (ICV) and without compromising on
production from the series of 18 deplet- MedcoEnergi International and special our overarching priority of safety.”
ing small and marginal fields. Middle East and North Africa envoy PDO hopes that the renewal of the
Challenges such as the viscosity of for Indonesia, and eminent members partnership will help to increase KSF
the oil and the high oil-water ratio in of the Indonesian Parliament, as well production from the current 17,500
the reservoirs have not dampened the as leading members of the MedcoEn- barrels of oil per day to at least 20,000
partnership’s success with revenues of ergi executive team and the company’s bpd over the next few years through
around US$4 billion being generated partners. secondary recovery, such as water flood,
for Oman. The sum of US$600 million covers the full field application of cyclic steam,
first five years from 2016-2021 – when enhanced oil recovery, re-instatement
it is expected around 100 new wells will of unconnected fields and more explo-
ration and appraisal. §
A A14 OIL & GAS ustral SIA MAY/JUNE 2015 www.oilandgasaustralasia.com
MedcoEnergi in $600m deal
with Oman
By Marie RYAN
be drilled - but should then increase by
US$80-130 million per year depending
on variables such as the production
target and budget.
PDO Managing Director Raoul Restuc-
ci said the signing represents a new way
of working between PDO and Med-
coEnergi.
“With our current agreement being
amended to create a true business alli-
ance, Mr Restucci said.
“What we are doing is leveraging the
fundamental strengths of both parties
and moving towards a deeper, stronger
partnership to deliver long-term value
for PDO and Oman,” he said.
Indonesia’s MedcoEnergi has signed a The extension of the production sharing “The purpose of this contract is to
US$600 million deal with Petroleum service agreement contract was signed maximise, in a safe and sustainable way,
Development Oman (PDO) to carry at an official ceremony at Mina Al Fa- production from the KSF cluster, using
on developing the Karim Small Fields hal, under the auspices of His Excellen- the resources of MedcoEnergi.
project in Oman. cy Dr Mohamed bin Hamad Al Rumhy, “In the current tough volatile oil price
The deal has been described by PDO as Minister of Oil and Gas and Chairman environment, MedcoEnergi has shown
very significant, running until 2040 and of the PDO Board of Directors. itself to be fully committed to continue
building on existing contracts that have The event was attended by His Ex- delivering value in an efficient way with
been in place for the past nine years. cellency Sukanto, Ambassador of the the guarantee of significant investment,
MedcoEnergi has been working closely Republic of Indonesia in Oman, His further support for In-Country Value
with PDO on the project to maximise Excellency Dr Alawi Shihab, Advisor to (ICV) and without compromising on
production from the series of 18 deplet- MedcoEnergi International and special our overarching priority of safety.”
ing small and marginal fields. Middle East and North Africa envoy PDO hopes that the renewal of the
Challenges such as the viscosity of for Indonesia, and eminent members partnership will help to increase KSF
the oil and the high oil-water ratio in of the Indonesian Parliament, as well production from the current 17,500
the reservoirs have not dampened the as leading members of the MedcoEn- barrels of oil per day to at least 20,000
partnership’s success with revenues of ergi executive team and the company’s bpd over the next few years through
around US$4 billion being generated partners. secondary recovery, such as water flood,
for Oman. The sum of US$600 million covers the full field application of cyclic steam,
first five years from 2016-2021 – when enhanced oil recovery, re-instatement
it is expected around 100 new wells will of unconnected fields and more explo-
ration and appraisal. §
A A14 OIL & GAS ustral SIA MAY/JUNE 2015 www.oilandgasaustralasia.com
