JAKARTA (RambuEnergy.com) – The Indonesian Energy and Mineral Resources Ministry (MEMR) has extended the production sharing contract (PSC) of PT Medco E&P Rimau to operate and develop the Rimau Working Area in the South Sumatera province.
Under the new PSC contract, Medco E&P holds 95% participating interest in the working area and the remaining 5% owned by a local government-owned entity.
The new PSC contract of the Rimau block will last for 20 years and becomes effective from April 23, 2023, the energy ministry said Thursday.
The signing of the new PSC, based on the gross split scheme, was witnessed by the deputy energy minister Arcandra Tahar.
The operator of the block has set a plan to invest around US$43.33 million to develop the block, with signature bonus handed over to the government amounting to US$4 million.
The contract was extended given the capability of the existing operator to maintain oil production, which reached an average 8,200 barrels per day last year, the energy ministry’s spokesperson Agung Pribadi said. (*)