Indonesia’s Medco Energi Internasional has announced that it will continue with plans to explore an oil field in Libya, and is preparing to establish a joint venture next month for that purpose.
The "president director" Lukman Mahfoedz (pictured) said the company, through its subsidiary Medco International Venture Limited, would own 25 percent of the stake in the joint venture, with the Libyan government owning 50 percent and another contractor the remaining 25 percent.
“The joint operating company will develop our project in Libya,” he said.
Medco’s plan to develop the Area 47 block was suspended last year following the revolution. A preliminary engineering study for the project was launched after tensions eased.
Lukman said Area 47 was estimated to be able to produce up to 50,000 barrels of oil per day, and that the project cost a total of $800 million.
“We’ve allocated $200 million for the next four years,” he said, adding that the fund would come from Medco’s internal cash and bonds.
(Sources: Jakarta Globe, Jakarta Post)