JAKARTA – PT Medco Energi Internasional Tbk (MEDC) has secured a 10-year extension of its oil and gas contract for the Bualuang block in Thailand.

MEDC Director and Chief Administrative Officer, Amri Siahaan, stated that the Production Period Extension (PPE) was approved by the Thai government on 17 December 2024 and will be valid until 2035.

“In 2025, our international activities are quite active, with the extension of the block in Thailand for another 10 years, including the Foreal and Terubuk blocks,” he said during the Indonesia Petroleum Association Convention and Exhibition (IPA Convex) on Tuesday (20/5).

The Bualuang block, located in the offshore B8/38 area in the Gulf of Thailand, began production in late 2019 with an initial output of 12,900 barrels of oil per day (bopd).

MEDC currently operates the block with a 100% participating interest. The production facilities in the block include three offshore platforms connected to a leased Floating Storage and Offloading (FSO) unit.

In 2024, MEDC’s average production at the block reached 4,800 thousand barrels of oil per day (mbopd), supported by a well workover programme using a jack-up rig and hydraulic workover unit.

In addition to Thailand, MEDC had previously planned exploration development in Mexico.

However, following further evaluation, the company decided to withdraw from the project due to economic considerations.

“In Mexico, we decided to exit. The exploration blocks there were not operated by us, and the results were suboptimal. So, we plan to relinquish them,” said Amri.

In 2025, the company will continue the divestment process of two deepwater exploration licences in Mexico, namely Block 10 and Block 12. Both processes are expected to be completed this year.

This follows the divestment of two MEDC assets in 2024: the Area 47 contract in Libya to the National Oil Corporation of Libya (NOC), and Block 12W in Vietnam to Bitexco Energy Company Ltd.

Currently, MEDC’s largest oil and gas operations are in Indonesia, followed by the Middle East region, particularly Oman.

In Oman, the company operates several blocks, including Karim Small Fields, Block 56, Block 60, and Block 48.

In Block 60, two exploration wells drilled have discovered oil reserves in the Karif formation, contributing 13 thousand barrels of oil equivalent per day (mboepd) in 2024. (DK/KR/ZH)