Medco to Spend $40m on Oil Field Exploration in Libya

Indonesia’s publicly listed oil and gas company PT Medco Energi Internasional plans to spend US$40 million on exploration activities on an oil block in Libya this year.

Medco’s operational director Lukman Mahfoedz said that the block, called Area 47, would require as much as US$80 million for exploration activities this year which will be covered by both Libya and Medco.

In an earlier press statement, Medco said that the drilling program for this year will also include the completion and testing of three previously drilled wells, which were suspended.

Area 47 is estimated to have contingent reserves of 307 million barrels of oil. Earlier, Medco teamed up with Canada-based Verenex Energy Inc to develop the block with Verenex appointed as the operator. But, since December last year, the Libyan Investment

Authority (LIA) has acquired Verenex’s participating interest in the block. Following the acquisition of Verenex’s interest in the block, Medco was appointed as the block operator for exploration activity starting in April 1, 2010…read more¬†

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