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Medco appoints consortium to build Block A production facilities

JAKARTA ( – PT Medco Energi Internasional Tbk (MEDC) has appointed a consortium comprises of PT Encona Inti Industri and PT JGC Indonesia as contractor to develop production facilities of Block A in East Aceh.

President Director of Medco Energi Internasional Lukman Mahfoedz said the company finally made direct appointment after a number of tender processes failed.

“The development of Block A gas block cannot be delayed anymore. Especially after Aceh Governor and East Aceh Regency Head have conveyed a message to immediately build the gas production facilities,” he said in Aceh as quoted by

He said Medco has asked endorsement from SKK Migas before making the direct appointment. He expects the consortium will complete up to 98 percent of the production facilities by end 2017.

Medco, through its unit PT Medco E&P Malaka, owns 41.67 percent shares in Block A, KrisEnergy 41.66 percent and Japex of Japan 16.67 percent. Lukman expects gas production can be started in early 2018 at a volume of 63 BBTUD.

The gas from the block will be transferred via Pertamina Arun Belawan gas pipeline network to meet gas demand of industries in Aceh and North Sumatra.

Medco on Monday (Nov 23) held groundbreaking ceremony to mark the construction of Block facilities. (*)

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Credit : SKK Migas

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