MedcoEnergi has shut down its oil production from Meta and Lica oil wells located in Desa Danau Cala, Kec. Lais, Kab. Musi Banyuasin (Muba), South Sumatera, for security reasons. The production was brought to a standstill due to a road blocking incident by a group of people who disturbs crude oil transportation from the oil wells to Matra oil gathering station in Musi Banyuasin.

The oil production from Meta and Lica wells are approximately 1,000 barrel per day, which accounts for 2% of MedcoEnergi total oil and gas production in Indonesia. The wells are belongs to the government and 80% of its production is owned by the government. The closing down of this production operation has been reported to SKKMIGAS, a government agency that oversees upstream oil & gas activities. The Company has also reported the road block incident to the police department including Polres, Polda, as well as the Commander of the Military District Commando (Dandim) 0401 Musi Banyuasin. MedcoEnergi representatives have conducted discussions and mediation efforts continuously with local support from the local government. However, the agreement with this group of people has not been met.

The Company unceasingly attempts to settle this issue immediately so that production operation can resume back to normal and will not disrupt the national oil production target.