Medco to commence drilling at Libyan block Sept

JSX-listed oil firm Medco Energi International Tbk. Said on Tuesday it would commence three-well drilling campaign in Libyan oil concession with Canadian firm Verenex Energy Inc.

Medco Director Rashid Mangunkusumo told reporter that drilling of the first well will commence at Area 47 exploration permit onshore Libya in September this year.

He said that Medco and Verenex will spend around US$70 million until three-well drilling completed. Medco in April had secured two rigs for its Libyan exploration.

The block was awarded to the partnership in 2005. Verenex is the block operator. According to Rashid, the block has already significant oil dicoveries from previous operator. He estimated that recoverable oil from the discovery could reach up to 60 million barrels of recoverable oil. ?According to the contract with Libyan government, the partnership could only tap the oil after spending certain amount of investment in exploration,? he said. He, however, estimated that the discovery could be brought onstream in 2008-2009.

Rashid further said that medco is eyeing expansion to its overseas operations. ?Medco is looking for opportunities in North Africa and Middle East as well as in the US,? he said. Apart from Libya, Medco has already had producing asset in the US and oil service contract in the sultanate of Oman.(alex/godang)