Medco says Area 47 Delayed 2 Yrs

Indonesia's PT Medco Energi Internasional has said that production from its Libyan oil and gas project would not commence until 2016, two years behind an earlier target.

A company spokesman told Reuters on Monday:

"With the new government, we are now making preparations for the construction of production facilities. We have started talks with the new government, and thankfully we also have partner companies. God willing we will begin production in 2016."

Medco had previously set a 2014 target for peak production of 50,000 bpd from its Area 47 oil and gas block, in which it plans to invest $220 million, but it cites recent political changes in Libya as the reason for the delay.

The National Oil Corporation (NOC) and the Libyan Investment Authority (LIA) -- Libya's sovereign wealth fund, will hold a total 75.5 percent interest in the joint operating company, Nafusah Oil Operations B.V., while Medco will hold the remaining 24.5 percent stake.

Lukman Mahfoedz (pictured), President Director and CEO of Medco Energi, told Reuters:

"The development of Area 47 Libya sets an important milestone of Libya's oil production from a new field development, and contributes to significant income to the country as well as to the company."

(Source: Reuters)

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