Found this article in Indonesia News from 19 December 2012. I...

Found this article in Indonesia News from 19 December 2012. I don't recall seeing this released by CUE previously. Could this be some of the concern to the SP drop of late and could also be related to the CEO resignation. There was an article stating the resignations were due to issues over the Jeruk field.

http://www.theindonesiatoday.com/indonesia/indonesianews/crudepalmoil/news/law/law-news/law-photo/item/2137-medco-files-us$35-million-claim-against-singapore-petroleum.html


JAKARTA (Indonesia Today) – Medco Straits Services Pte Ltd, subsidiary of PT Medco Energi Internasional Tbk, files arbitration claim against Singapore Petroleum Sampang Ltd (SPC) and Cue Sampang Pty Ltd (Cue) related to Jeruk exploration project.


In the arbitration claim, filed on August 10th 2012, Medco Straits Service demanded the companies to recover its US$35.06 million investment.

The investment of Jeruk Project amounting to US$30.3 million, which represents disbursements for the Jeruk Project made by the Medco with Cue Sampang and Singapore Petroleum Company in accordance with the Jeruk Economic Agreement entered on January 4, 2006.

Under the agreement, Medco is entitled to recover such disbursements from Cue and SPC once the Oyong Field in the Sampang Block of which both parties are participating owners, starts producing oil, and Cue and SPC have recovered their own costs.

Medco’s original investment cost in the Jeruk Project was US$35 million. However, it was impaired in 2008 when the exploration activities were stopped. In 2011, the Oyong field has already started production whereby Cue and SPC have fully recovered all of their costs related to the Jeruk field. Medco then in 2011 reversed the allowance for impairment of the investment in the Jeruk Project.