MEDC to Release North-East Bangkanai Block

PT Medco Energi Internasional Tbk (MEDC) plans to release the North East Bangkanai Block to the Indonesian government. The oil block in the Central Kalimantan does not meet the economies of scale or is not profitable. Consequently, the company has sent a letter to the Energy and Mineral Resources explaining the company’s plan to terminate the participating interest (PI).

On the other hand, PT Ophir Medco Energy, the MEDC’s sub-holding company, had previously executed a six-year exploration at the North East Bangkanai Block and carried out every commitment. However, block exploration is hazardous and requires a significant investment. Despite the plan to release the North East Bangkanai Block, MEDC still has two other oil blocks to explore in Bangkanai Raya: Kerendan and West Bangkanai block.