Medco to spend $1.4b on oil exploration

The Jakarta Post ,  Jakarta   |  Wed, 08/08/2007 12:54 PM  |  Business

JAKARTA : A subsidiary of the country's largest publicly traded oil company, PT Medco Exploration and Production (E&P), will spend US$1.4 billion in capital expenditure between 2008 and 2010 to finance exploration in its oil and gas blocks in Aceh and Central Sulawesi.

Medco E&P president director Lukman Mahfoedz said Tuesday the company would spend as much as $400 million a year until 2010 in Aceh's Blok A and Blok Senoro in Central Sulawesi to get oil and gas production on stream by 2010.

""We're targeting pumping a total of 100,000 barrels of oil equivalent per day by 2011 in the two blocks,"" Lukman said.

The company currently produces 75,000 barrels of oil equivalent -- of which 50,000 barrels are oil -- in its existing concession areas.

Lukman said the company had allocated a total $300 million in capital expenditure for this year's exploration and production activities. JP

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