Government through the Ministry of Energy and Mineral Resources (ESDM) handed over the management of Rimau block in South Sumatra to PT Medco E&P Indonesia, on Thursday (Feb 14).
The oil and gas block has an area of 1,103 square kilometers with a total investment value of US$41.33 million and a signature bonus of US$4 million. It was reported that the Rimau block’ average oil production reached 8200 barrels a day and gas 3.6 million standard cubic feet per day.
Unlike the previous cost recovery contract, this one using the gross split scheme. The revenue sharing contract is an extension contract with Medco E&P’ 95% interest participation holders and 5% regional mining and energy company. This contract is valid for 20 years, effective from 2023 to 2043.