Medco Establishes Joint Operating Company to Operate Libya Area 47 Insider Company
(The Insider Stories) - Indonesia’s biggest listed oil and gas company, PT Medco Energi Internasional Tbk, on Tuesday (03/26) announced the official establishment of the Joint Operating Company (JOC) with its partners, the National Oil Corporation of Libya (NOC) and the Libyan Investment Authority (LIA).
The JOC will be the operator for development and production phases of in the Area 47. In this JOC, namely Nafusah Oil Operations B.V., MedcoEnergi will own an interest of 24.5%, while NOC and LIA will own interest of 51% and 24.5% respectively.
The production from Libya Area 47 is envisaged to start in 2016 with an ultimate production plateau of 50,000 BOPD. The development project is planned to monetize about 300 MMBOE of recoverable reserves from six (6) out of sixteen (16) oil and gas fields that were discovered so far in Area 47.
Total capital investment is estimated at about US$ 900 million, comprising of US$ 280 million for drilling and US$ 620 million for surface facilities. MedcoEnergi’s portion will be approximately US$ 220 million.
Lukman Mahfoedz, President Director & CEO of MedcoEnergi, expressed that “MedcoEnergi is very pleased with this accomplishment, following up the Commerciality Declaration in December 2011. 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.”
Lukman also added that “We are very excited for the remaining 10 fields, that were discovered, are being appraised right now for the next stage of development.”
