Jakarta, INTI - MedcoEnergi is accelerating the first production target of the Sakakemang Block in South Sumatra from the first quarter of 2028 to the third quarter of 2027 in an effort to support Indonesia’s national energy security.
Senior VP Business Support of MedcoEnergi, Iwan Prajogi, stated that the accelerated production timeline is being achieved by utilizing existing facilities, allowing the development process to move forward more efficiently.
“Sakakemang is currently in the development stage, with a target to be on stream and begin production in Q3 2027,” Iwan said during the IPA Convex discussion in Tangerang, Banten, on Wednesday.
According to him, MedcoEnergi is integrating the development of the Sakakemang Block with existing facilities in the Corridor and Gresik blocks, eliminating the need to build entirely new infrastructure.
“This approach allows the timeline to be accelerated while also reducing costs,” he explained.
Medco Strengthens Operations in South Sumatra
The Sakakemang Block became one of MedcoEnergi’s newest assets after the company acquired a 45 percent participating interest and operatorship from Repsol in 2025.
The oil and gas block has also received government approval for its Plan of Development.
Its location adjacent to the Corridor Block is considered strategic for integrating MedcoEnergi’s operations across multiple working areas.
Iwan noted that the acquisition further strengthens MedcoEnergi’s presence in South Sumatra.
The company currently operates four oil and gas blocks in the region: Corridor Block, Sakakemang Block, Rimau Block, and South Sumatra Block.
In addition, the acquisition process for an 80 percent participating interest and operatorship in the South Sakakemang Block is still awaiting government approval.
MedcoEnergi’s Oil and Gas Production Rises 18 Percent
MedcoEnergi recorded oil and gas production of 170 thousand barrels of oil equivalent per day (mboepd) in the first quarter of 2026.
The achievement marked an 18 percent increase compared to the same period last year.
The production growth is seen as strengthening MedcoEnergi’s role in maintaining national energy supply amid rising domestic energy demand.
“One of MedcoEnergi’s key highlights in 2025 was strengthening our footprint in South Sumatra,” Iwan stated.
Conclusion
MedcoEnergi is accelerating the development of the Sakakemang Block to strengthen Indonesia’s national energy security while expanding its operational footprint in South Sumatra. Supported by strategic acquisitions and integrated infrastructure, the company continues to increase production capacity amid growing domestic energy demand.
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