Anadarko Petroleum Corp. has entered into an exploration joint venture agreement for acreage Offshore Indonesia with Medco Energi International.
Under the agreement, Anadarko subsidiaries are gaining access to 13 production-sharing contracts totaling 7.8 million acres onshore and offshore Sumatra, Kalimantan, Sulawesi, Java, and Papua. Anadarko has committed to a three-year work program to fund exploration activities at a cost of $80 million.
Anadarko has the opportunity to earn up to a 40% interest in each production-sharing contract where a successful exploration well is drilled.
In December 2004, the government of Indonesia awarded Anadarko exploration and production rights to the North East Madura III (NEM III) block. Anadarko recently opened an office in Jakarta, Indonesia, and is preparing to drill the initial two wells on the NEM III block.