Ministry Of Energy And Mineral Resources Approves PSC Medco To Return To Cost Recovery

Refinery illustration (Photo: antara)

JAKARTA - The Ministry of Energy and Mineral Resources (ESDM) has approved the new Corridor Block Production Sharing Contract (PSC) amendments.

With this permit, the Corridor Block PSC will return to PSC Cost Recovery with better requirements to ensure the economic development of several new developments and maintain further exploration in the block.

The allocation and gas prices for three gas buyers have also been approved, including for PT Perusahaan Gas Negara Tbk (PGN).

"The Gas Sale and Purchase Agreement will be signed in the near future," said Medco E&P President Director Ronald Gunawan in his official statement, Thursday, December 14.

The total daily gas delivery based on contracts from the block currently reaches 700 billion British thermal units per day (bbtud) with 83 percent being sold to domestic buyers and 17 percent being exported to Singapore.

"This agreement is a significant step forward in ensuring the future of the Corridor Block which is stable and sustainable, thus providing great benefits to the Nation, MedcoEnergy, partners and all stakeholders," concluded Ronald.