Pertamina to start Libya exploration next year

State-owned oil and gas company PT Pertamina expects to start oil and gas exploration in Libya next year.

Pertamina will spend US$30 million to explore Block 17-3, around 100 kilometers north of Libya's capital of Tripoli, and $19.1 million to explore Block 123-3, located in the Sahara Desert, Vice President Mustiko Saleh said Tuesday.

The Singapore branch of Commerzbank will help finance Pertamina in its operations in Libya, Mustiko said, without elaborating.

Libya earlier this month awarded the two blocks to Pertamina via a bidding process.

Block 17-3 is estimated to have 3.5 trillion cubic feet of gas and 75 million barrels of oil reserve, while Block 123-3 is estimated to have 400 million barrels of oil reserve.

Libya is the first African country in which Pertamina will prospect for oil and gas.(*)