Government Appoints Medco Energi, PT Sele Raya & KUFPEC to Manage Amanah Oil and Gas Block in Phase I Auction

The Indonesian government has appointed PT Medco Energi Internasional Tbk (MedcoEnergi), PT Sele Raya, and KUFPEC as the operators of the Amanah oil and gas block located in South Sumatra.

This appointment is the result of the Phase I 2024 Oil and Gas Working Area Auction conducted by the Ministry of Energy and Mineral Resources (ESDM).

The Amanah Block will be managed through a newly established entity, PT Medco Energi Linggau, with the following ownership structure:

• MedcoEnergi: 40% (Operator)
• PT Sele Raya: 30%
• KUFPEC: 30%

Ronald Gunawan, Director and Chief Operating Officer of MedcoEnergi, stated that the onshore block was previously an open area. Medco, together with its consortium partners, conducted a joint study to evaluate the resource potential and economic feasibility of the area.

The study results indicated that the Amanah Block holds economically viable oil and gas potential. Based on these findings, PT Medco Energi Linggau and its partners proposed the area as a new oil and gas block.

The Amanah Block covers an area of approximately 1,753.15 square kilometers and contains potential oil and gas reserves. Its proximity to existing Medco E&P producing assets also provides opportunities for operational synergy.

The contract type for this block is a Production Sharing Contract (PSC) with a cost recovery mechanism.

As part of the commitment, the consortium agreed to an initial investment of USD 3.15 million, along with a signature bonus of USD 300,000.

MedcoEnergi reaffirmed its commitment to managing the block effectively to support Indonesia’s national energy security.