Anadarko to spend $80 million in 2007 joint exploration drilling with Medco

US oil firm Anadarko Petroleum will spend US$80 million next year to conduct drilling at Medco Energi?s exploration block as part of exploration joint venture program between the two companies, Medco CEO Hilmi Panigoro said on Friday.

Hilmi said that the wells that would be drilled with Anadarko are located mostly in high-risk areas. He did not give the number of the wells that would be drilled.

In 2006, said Hilmi, Anadarko had spent more than $10 million to conduct joint exploration drilling, with the first drilling in Sesayap-1 well in Simenggaris block in East Kalimantan, where Anadarko opted not to participate in follow up drilling.

Anadarko in July 2005 signed an exploration joint venture agreement with Medco, under which Anadarko is gaining access to Medco's 13 blocks onshore and offshore Sumatra, Kalimantan, Sulawesi, Java and Papua. Anadarko has committed to a three-year work program to fund wildcat exploration activities in return for opportunity to earn up to a 40 percent interest in each PSC where a successful exploration well is drilled.(godang)