Anadarko Petroleum Corp. has significantly increased its access to exploration acreage offshore Indonesia through an exploration joint venture agreement with Medco Energi International, Indonesia's largest independent exploration and production company.
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 US $80 million, subject to the satisfaction of certain conditions. Anadarko has the opportunity to earn up to a 40 percent interest in each production sharing contract where a successful exploration well is drilled at Anadarko's cost and a plan of development is approved.
"Anadarko is very pleased to have reached this joint venture because it provides access to a large amount of highly prospective acreage in prolific basins across Indonesia where we look forward to applying our proven exploration expertise," said Bob Daniels, Anadarko senior vice president, Exploration & Production.
"Medco Energi is a very experienced Indonesian operator, and this agreement, coupled with the offshore block we are currently exploring, strengthens Anadarko's commitment to the region and provides Anadarko a stronger foothold from which to explore in a proven hydrocarbon province."
In December 2004, Anadarko was awarded exploration and production rights to the North East Madura III (NEM III) Block by the government of Indonesia. Anadarko recently opened an office in Jakarta, Indonesia and is preparing to drill the initial two wells on the NEM III block.
