Medco to spend $530m for E&P projects next year

PT Medco E&P, the upstream unit of Indonesian stock exchange-listed energy firm PT Medco Energi Internasional will increase investment to US$530 million to finance capital expenditure and operating cost next year, Bisnis Indonesia reported.

Medco E&P?s President Director Lukman Mahfoedz said in Jakarta on Tuesday that the investment wholly coming from internal funds will be used to finance exploration activities, such as provision of drilling facilities and development of Block A in Aceh, Block Senoro-Toili in Sulawesi and Block Lematang in South Sumatra.

Despite of the increase in investment, the company?s production target does not rise significantly, only 71,000 barrels oil equivalent per day (BOEPD) in 2008, compared to 68,000 BOPED in 2007.

Medco will drill 86 development wells and 23 exploration wells next year, he said. (*)