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Breakthrough Service Contract Signed for the PDO’s Karim Fields

Source: www.gulfoilandgas.com 3/20/2006, Location: Middle East

In a landmark ceremony in Muscat, Petroleum Development Oman (PDO) and MedcoEnergi International formally signed a first-of-its-kind service contract to develop a cluster of 18 small fields in the Nimr-Karim area of south Oman. The ceremony was held in the Oil and Gas Exhibition Centre under the patronage of His Excellency Mohammad bin Nasser al al-Khasibi, Secretary General of the Ministry of National Economy and Deputy Chairman of the Board of Directors of PDO. The ceremony was attended by H.E. Dr. Alawi Mohammad Shihab, Indonesian Presidential Envoy to the Middle East, H.E. Nasser bin Khamis al-Jashmi, Undersecretary of the Ministry of Oil and Gas and member of the Board of Directors of PDO, as well as other representatives from the two companies.

The agreement was signed by Mr. John Malcolm, PDO’s Managing Director, and Mr Hilmi Panigoro, CEO of MedcoEnergi International Tbk.

The Karim Small Fields Service Contract will give MedcoEnergi a 10-year mandate to accelerate the development of a group of PDO’s ‘small fields’ so PDO can devote more attention to its portfolio of large fields, which account for more than 80% of Oman’s total oil production. Under the terms of the agreement, MedcoEnergi and its partners will develop a work programme and arrange for its budgeting and financing.

Mr Malcolm welcomed the opportunity to work with MedcoEnergi. He said: “This novel service contract will enable PDO to boost production from these previously marginal oil fields without affecting the more critical delivery of major enhanced oil recovery projects underway in other areas of Oman operated by PDO.”

In response, Mr Hilmi Panigoro CEO of MedcoEnergi International Tbk said that he “looked forward to working hand in hand with PDO” and valued the signing of the contract as “an excellent opportunity for MedcoEnergi to expand its presence in the Middle East Oil and Gas market.” He also added: “We will bring with us a wealth of experience and technical know-how to complement the skills already demonstrated by PDO. And we are certain that we can add value and deliver excellent results for these fields.”

John Malcolm concluded “It is all about having different working relationships, and different contracting methods that will allow PDO to get the focus on a job by working with others who also have the same focus.”

As a part of the service contract agreement, Medco Energi has signed today a joint operating agreement with Oman Oil Company taking 25% participation interest in the service contract. On this occasion Ahmed Salim Al Wahaibi, CEO of Oman Oil Company, has stated that the signing of the Participation and Economic Sharing Agreement with MEDCO is part of OOC strategy to develop the upstream business. Oman Oil Company is looking forward in working with Medco Energi and PDO on this project.

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Related Articles: Accounting, Statistics  Acquisitions and Divestitures  Asset Portfolio Management  Economics/Financial Analysis  General  Insurance  Investment  Mergers and Acquisitions  Risk Management 


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