Medco to spend up to $356 million to boost production

Publicly listed PT Medco Energi International will allocate up to USS356 million for capital expenditure in 2012, to finance exploration and development of new oil and gas fields in the country and overseas, The Jakarta Post reported Friday.

?We have arranged to spend S1.2billion next year; $356 million of which will be used as capital expenditure and the $818 million as operating expenses;? company president director Lukman Mahfoedz said during his company?s public expose on Thursday

The capital expenditure will be used to finance the company?s main development projects, which are gas field development in block A in Aceh to reach production of up to 110 million metric cubic feet per day (mmscfd) by 2013, an enhanced oil recovery site in Rimau in Sumatra, gas field development in Senoro in Sulawesi to reach production of 250 MMscfd, an LNG plant in DonggiSenoro in Sulawesi to reach a Capacity of 2.1 million tons per annum (mtpa), a geothermal power plant project with a planned capacity of 3x110 MW in Sarulla in Sumatra and oil field development in Libya with a planned capacity of 2x25,000 barrel of oil per day

Medco is cooperating with various institutions to run the development projects.

For the oil field development project in Libya, the company is cooperating with the Libya investment authority.

?We have explored 20 well in area 47 in Libya. We recorded good result as we?ve found oil in 18 of the wells explored. We have finished the exploration and will build facilities starting from next year to 2014. We hope the oil filed in Libya will start, production in early 2015,? Lukman said. (*)