Jakarta. Oil and gas company Medco Energi Internasional (IDX: MEDC) has been appointed by Malaysia’s state energy company Petroliam Nasional Berhad (Petronas) as operator of the offshore Cendramas Block.

The mandate was awarded to Medco through its wholly owned subsidiary, Medco Asia Pacific Limited, via a letter of award from Petronas for the Cendramas Production Sharing Contract (PSC).

Medco Asia Pacific will partner with Malaysia-based Dialog Resources Sdn. Bhd. and EnQuest Petroleum Production Malaysia Ltd., both of which were proposed as participants in the block.

“We appreciate Petronas for this appointment and the trust placed in Medco Asia Pacific Limited as operator of the Cendramas PSC,” Medco President Director Hilmi Panigoro said in a statement on Wednesday.

Hilmi said the company looks forward to close cooperation with Petronas, Dialog and EnQuest to ensure safe and reliable operations while maximizing the value of the asset.

The appointment remains subject to the execution of the PSC and a Joint Operating Agreement, as well as other conditions set by Petronas.

The Malaysian award comes as Medco strengthens its balance sheet and ramps up capital spending.

Earlier this month, the company secured a Rp 8 trillion ($476.59 million) term loan facility from state-owned lender  Bank Negara Indonesia Tbk for general corporate purposes. The credit agreement was signed on Feb. 4, according to a disclosure to the Indonesia Stock Exchange.

In total, Medco recently obtained credit facilities worth Rp 8.8 trillion from two major banks, which the company said would be used for capital expenditure and general corporate funding.

The group has also continued to invest in upstream exploration. Through its subsidiary Medco E&P Grissik Ltd., Medco spent $43.62 million during the October–December 2025 period on exploration activities, according to its monthly report to the exchange.

The largest outlay, about $22.36 million, was used for 3D seismic acquisition in the Corridor Block in South Sumatra. A further $16.4 million was spent on 3D seismic testing and acquisition in the Rebonjaro area, also within the Corridor Block.

In addition, Medco allocated $4.85 million for drilling and testing the Rawa Telisa-1 exploration well in South Sumatra. Drilling has been completed, with well testing ongoing.

The Corridor Block is one of Indonesia’s key gas-producing areas, supplying domestic demand in Sumatra and Java. Medco said further plans include completing seismic data processing and drilling an additional exploration well in 2026.

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