- MedcoEnergi wins $600m contract to continue development of Karim Small Fields project
- Firm has agreed to lead exploration programme that includes three new wells in first two years
Petroleum Development Oman (PDO) has awarded Indonesias MedcoEnergi and its local Omani partners a $600m contract to continue the development of the Karim Small Fields (KSF) project in the south of the sultanate.
The deal builds on the original 10-year contract MedcoEnergi signed in 2006 and extends the agreement until 2040.
MedcoEnergi is the operator of KSF and holds a 51 per cent stake in the fields, with the remaining share held by Kuwait EnergyCompany, two local partners and Oman Oil Company Exploration & Production (OOCEP).
The Jakarta-based group has agreed to lead an exploration programme that includes three new wells in the first two years, and will receive service fees based on the level of production costs and the success of exploration.
Since 2007, MedcoEnergi has more than doubled KSFs production, reaching a peak of 22,000 barrels a day (b/d) of oil, with more than 250 development wells drilled. Production is currently at 17,000 b/d, the company said.