PT Medco Energy International plans to invest another US$40 million for the development of the company's two oil concession areas in Yemen, the company's senior executive said.
General Manager of Medco operations in Yemen Ahmad Syaifudin said in Jakarta on Saturday that the company had invested about $10 million for seismic surveys of two onshore blocks, Wedi Amed and Wedi Arat, in Hadhramaut province, Yemen, which the company obtained on last March.
"These two blocks are estimated to have 70 million barrels of oil in reserve," he said, adding that with such a large reserve, Medco is expected to be able to produce 70,000 barrels per day from the two sites .
"Medco will invest another $40 million in drilling, which we hope to start in 2011," Ahmad told The Jakarta Post following a meeting with representatives of Yemen's government and parliament. The meeting was also attended by Indonesian presidential ambassador for the Middle East Alwi Shihab.
"It took us almost two years to get the permits because Yemen does not have regulations regarding oil exploration," he said. Adding that the Yemeni parliament was helpful in the issuance of the permits.
The Yemeni delegation is currently in Indonesia to study oil and gas regulations in Indonesia.
The head of the Yemeni Oil and Mineral Resources Committee Abdul Galil Thabet said, "One of the purposes of our visit was to share and obtain knowledge about oil and gas exploration in Indonesia, especially those regarding the regulations".
During the one-week visit, Yemeni representatives also visited Medco oil and gas production facilities and met with government officials dealing with oil and gas operations.
Abdul Galil said the Yemeni government was inviting Indonesian investors also to develop his country's untapped oil reserves.
According to the deputy chairman of Yemen Petroleum Affairs, Thabet Ali Abbas, there were at least 50 untapped onshore and offshore oil and gas reserves in Yemen at present. Last November, Yemen's total oil production reached an average of 283,000 barrels per day. (rch)
