Medco Energi Pledges $600m for Oman Project
Jakarta. Medco Energi Internasional, Indonesia's largest private oil and gas company, is setting aside $400 million to $600 million for the production and exploration of Karim Small Fields in Oman in the next five years, Medco president director Lukman Mahfoedz said over the weekend.
The oil and gas giant has secured a bank guarantee from Alizz Islamic Bank to finance the KSF operation, Lukman said.
The company will use proceeds from the sales of oil and gas fields – which currently produce 18,000 barrel of oil per day – to finance exploration.
Medco secured in a 10-year contract from Petroleum Development Oman (PDO) in 2006 to arrest production decline in Karim Fields and exploit its potential.
For operating Karim Fields, the company formed a joint venture, called Medco, with Oman Oil Corporation (OOC), an oil and gas exploration and production company owned by the Omani government, Kuwaiti private investment company Kuwait Energy and two private Omani companies.
Medco now owns a 68 percent stake in the joint venture.
Medco and PDO amended the previous contract in April to grant Medco the rights to explore and exploit Karim Fields for the next 25 years. The new contract became effective on June 1, Lukman said.
Investor Daily
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