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Economy in brief: Medco ceases Yemen operation over security
Publicly listed PT Medco Energi Internasional said it has temporarily ceased its operations in Yemen over rising concerns over security in the war-torn country
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ublicly listed PT Medco Energi Internasional said it has temporarily ceased its operations in Yemen over rising concerns over security in the war-torn country.
'Our operation is actually in the Hadhramaut area, which is safe. However, we have temporarily halted exploration and production activities there because of safety concerns,' Medco president director Lukman Mahfoedz said on Tuesday. He added that the company's office in the capital city, Sana'a, had been damaged by the ongoing fighting in the area. Fortunately, according to Lukman, all local employees in the office are safe.
Medco, whose shares are traded on the Indonesia Stock Exchange (IDX), currently has a 25 percent stake in Malik Block 9 in Yemen. Lukman said that ceasing the operation would not make much impact on his company's overall performance because the contribution of the field to the firm was only around 1,000 barrels of oil per day.
'We are expecting that the violence will stop and negotiations will be conducted,' Lukman said.
