1948 - 2024

Raisis Arifin Panigoro

Advisor of MedcoEnergi

It is with heavy heart that we announce the passing of Ibu Raisis Arifin Panigoro, MedcoEnergi's Advisor (2022 - 2024). Her service and contribution made her a role model for all of us.

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Login | Friday, 14 June 2024 |

An Additional 25 Years for Medco in Oman

Media Release


An Additional 25 Years for Medco in Oman

Jakarta, 28 April 2015 - PT Medco Energi Internasional Tbk is pleased to announce that its subsidiary, Medco Oman LLC (altogether called the “Company”) has inked an Amendment of the Karim Small Fields Agreement (“KSF Amendment”) on 28 April 2015. The signing of the agreement by Raoul M. Restucci, Managing Director of PDO and Lukman Mahfoedz, President Director & CEO of the Company in the presence of Minister of Oil and Gas Oman, Dr. Mohamed bin Hamad Al Rumhy, Indonesian Ambassador to Oman, Sukanto and Chairman of the Company, Hilmi Panigoro. The KSF Amendment defines the commercial and technical scope changes to the Karim Small Fields Service Agreement which was originally signed by the Company (and its Partners) with Petroleum Development of Oman (“PDO”) in 2006 for ten years contract period.

Several favorable key terms defined in the KSF Amendment include, among others, an additional 25 years of operations by the Company (and its Partners) following the signing of the KSF Amendment, an exploration program which includes three wells in the first two years, a 3-tier service fee scheme based on level of production costs that will yield better operation economics, and a reward mechanism upon successful exploration activities as measured by additional contingent resources.

As operator in Karim Small Fields, the Company holds 51% effective participating interest, with the remaining balance held by Kuwait Energy Company (KEC), two local Partners and Oman Oil Company Exploration & Production (OOCEP). Since 2007, the Company has successfully increased Karim Small Fields’ oil production to more than double, such that it reached peak production in 2012 at more than 22,000 BOPD, with over 250 development wells drilled to date. Currently, the production is 17,000 BOPD.

Lukman Mahfoedz, President Director & CEO MedcoEnergi stated, "We are very pleased to have the KSF Contract amended with improved terms and bigger opportunities in finding new hydrocarbon. We believe that this additional 25-year contract period demonstrates and affirms our achievement in the last nine years of diligent and successful operations in doubling the production. We are looking forward to working together with the Government of Oman and PDO in the next 25 years aiming to successfully increase production, execute exploration programs, and maintain safe operations.” Lukman also added, “Our operations team, which comprises of over 80% Omanis, has been working extensively to add value to our international operations and to support the Company’s business strategy in strengthening the portfolio of producing assets. In the future, we plan to extend participation of our Omani staff, not only in Oman but also in our other operation areas globally.”