Jakarta, 28 June 2016 – PT Medco Energi Internasional Tbk (MedcoEnergi) is pleased to announce the signing of a 10 year extension of the Production Sharing Contract for the Contract Area Lematang (PSC) through its subsidiaries PT Medco E&P Lematang, Lundin Lematang BV and Lematang E&P Limited, effective as of April 6, 2017.

Following approval of the Ministry of Energy and Mineral Resources of the Republic of Indonesia (ESDM), this PSC was also signed by the Upstream Oil and Gas Regulatory Special Task Force (SKK Miigas) today at ESDM office, Jakarta.

PT Medco E&P Lematang is the Operator and together with other MedcoEnergi subsidiaries holds 100% participating interest under the PSC. Average gross daily gas production from Lematang Contract Area in 2015 was 38 Bbtud. This Contract Area is located in South Sumatra, close to the South Sumatra Contract Area which is owned and operated by PT Medco E&P Indonesia, a subsidiary of MedcoEnergi.

Roberto Lorato, CEO of MedcoEnergi remarked, “MedcoEnergi appreciates the trust shown by the Government of Indonesia and the opportunity to continue to operate this PSC. The signing of the 10 year extension reaffirms the Company’s commitment to contribute to Indonesia’s growing energy needs and its ability to leverage and create value from its strong position as Indonesia’s premier independent energy company”.