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Indonesia's Medco plans to spend US$500 million on gas block in Aceh

Indonesia's Medco plans to spend US$500 million on gas block in Aceh

PT Medco Energi Internasional, Indonesia's largest publicly traded oil company, will spend US$500 million to develop a gas block in Aceh, the Jakarta Post reported Monday.
Medco is in the process of submitting its plan of development to the Upstream Oil and Gas Regulatory Agency for approval, Medco President Director Lukman Mahfoedz is reported to have said over the weekend.
Medco will share the development costs with its partners in Blok A, the U.K.'s Premier Oil Plc and Japan Petroleum Exploration, Lukman said.
Medco holds 41.67 percent of the concession for Blok A; Premier holds 41. 66 percent; and Japex holds the remaining 16.67 percent.
Blok A was previously jointly owned by ConocoPhillips and ExxonMobil Corp., who said they sold their stakes because the high content of carbon dioxide in the block makes development too expensive, the Post reported.
Medco and partners bought ConocoPhillips' 50 percent share in January, and ExxonMobil's equal share in April 2006.