Oil and Gas Exploration in East Aceh (Indonesia)

PT Medco E & P Malaka who gets control of Block A license extension in East Aceh has finally announced the launching of the commencement of exploration activities of OIL and gas  at the end of this year.

In addition, the commencement of operation of OIL and gas exploration in Block A is also highly expected by PT Pupuk Iskandar Muda (PIM). Fertilizer company based in the city of Lhokseumawe it has signed a contract with PT Medco E & P Malaka to supply 110 million cubic feet of gas per day (mmscfd) for approximately five years. Because of all this, PT PIM should bring gas supplies from outside Aceh transported by cargo ship.

Medco's commitment was conveyed President Director / CEO of PT Medco E & P Malaka, Budi Basuki in the greeting ceremony launching the start of projects of OIL and gas field Block A and the implementation of community development programs

Budi added that the investment area of Block A in East Aceh require funds worth $ 600 million. While the need for opening of an oil well requires USD 10 million or equivalent to Rp 180 billion. also will open a new OIL wells into reserves for the future.

East Aceh Regent, Muslim Hasballah said, the oil and gas mining concessions covering 15 districts of 24 districts in East Aceh. Of the 15 districts, most of the region oil and gas sub-sectors within the concession area of PT Medco E & P Malaka or so-called Block A. While PT Pacific OIL & Gas in District Rantau Peureulak and PT Triangle Pase Inc. located in District Pante Bidari.