Indonesia’s Medco Energi produces first oil from field in Thailand

The company, publicly listed on the Indonesia Stock Exchange as MEDC, said in a statement on Tuesday that production was expected to ramp up to 14,000 bopd once the company finished drilling wells by mid-2020. Medco did not reveal the targeted customer for its oil.

Medco took over Bualuang after acquiring the field’s previous owner, London-based Ophir Energy, for 408.8 million pounds (US$543.1 million) in May. The Indonesian company had planned to drill three wells, install new infrastructure and produce oil from Bualuang by this year’s fourth quarter.

“The integration of Medco Energi with Ophir Energy is going well with potential collaboration worth US$50 million each year,” said Medco chief executive officer Roberto Lorato in the statement.

The acquisition was meant to strengthen Medco’s international portfolio but the company surprised observers in August when it announced plans to sell off high-risk and high-investment assets in, among other countries, Bangladesh, Vietnam and Guinea, but not Thailand.