Medco to sell part of stake in Libyan oil block

PT Medco E&P Indonesia is considering selling a part of its stake in the K47 oil block in Libya as it needs funds to finance its projects in Indonesia.

?We are likely to reduce our ownership in the K47 Libyan block. We don?t intend to withdraw from the project but only sell part of our ownership. We have a 50 percent stake in the block and are still in talks to about the size of the stake we are going to sell,? Medco E&P President Director Budi Basuki said in Jakarta on Tuesday on the sidelines of the Indonesian Petroleum Association (IPA) Conference & Exhibition.

?We need funds to finance our projects in Indonesia, such as the Block A (in Aceh) and the Donggi-Senoro LNG project (in Central Sulawesi),? Budi said.

Aside from farming out its stake in the Libyan block, Medco is also mulling an alternative option of using the stake as collateral to raise loans to finance the Indonesian projects, he said.

The Libyan block is said to have 2.15 billion barrels of oil reserves. (godang)