Medco prepares to start drilling in Yemen
Wednesday, June 5 2013 - 01:32 AM WIB
IDX-listed PT Medco Energi Internasional Tbk is currently conducting seismic activity, and making preparations to carry out drilling work at block#83 and block#82 exploration wells in Yemen.
This was said by company Corporate Secretary, Imron Gazali to Petromindo.com on Wednesday. He did not elaborate.
Medco, through subsidiary Medco Yemen Malik Ltd, acquired last year a 21.25 percent participating interest in a Yemen oil and gas asset called Block 9 (Malik), which is operated by Calvalley Petroleum (Cyprus) Ltd.
Block 9 is an exploration and production block located in the province of Hadramaut, Republic of Yemen, about 350 kilometers north-east of the Yemeni capital, Sana?a. The Block, which is located within the Sayun-Masila Basin, has an area of 2,234 square kilometers, in which some of its area has previously been explored.
On 25 August 2005, the Government of Yemen has granted the construction license for the Block for the period of 20 years. The license also slates that the holders of participating interest of the block has the right to negotiate for an extension of another 5 years after 2025.
The estimated gross 2P reserves of Block 9 is approximately 58.6 mmbo (as of 1 January 2012) and is envisaged to produce up to approximately 14.5 mbopd. Discoveries in Block 9 include four oil fields.
Elsewhere, Imron said that Medco is also currently making the necessary preparations to develop Area#47 oil and gas project in Libya.
The company has said that production from 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.
Medco is teaming up with National Oil Corporation of Libya (NOC) and the Libyan Investment Authority (LIA) to develop the project.
Editing by Reiner Simanjuntak