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Jakarta Post

Medco seeks $275m in loans to finance oil field in Libya

  • Alfian

    The Jakarta Post

Jakarta   /   Mon, May 11 2009   /  10:16 am

Publicly listed PT Medco Energi International is seeking as much as US$275 million worth of loans to develop its oil block in Libya. Medco project director Lukman Mahfoedz said the so-called Area 47 project in Libya would cost $800 million for facility construction and $300 million for development. “Of the total cost of US$ 1.1 billion, Medco will only contribute 25 percent,” he said. Medco president director Darmoyo Doyoatmojo said he was optimistic the company would secure the required loans. “Once a reserve has been found, the project’s risk will be very small,” he said, adding Medco had talked with several banks about loans. Area 47 is estimated to have contingent reserves of 307 million barrels of oil. Under the production sharing agreement, Medco and partner Canada-based Verenex jointly own 13.7 percent of the reserve, while Libya’s National O...