Indonesia's Medco Energy signed a commercial agreement with Libya Investment Authority (LIA) for its Area 47 field in Ghadames basin, Libya, the oil producer said on Monday.
It will start the development stage of the production facility in 2012, construction in 2012 and it is entitled to $374.3 million in cost recovery funds, it said in a statement.
Production facility work for 26 wells is scheduled to be finished in 2015 at a cost of $800 million and funded by Libya's National Oil Corporation, LIA and Medco Energy. "According to a 2008 study, Medco has contingency reserves of 352 MMBOE. That is excluding newfound exploration reserves in the past few years," said Medco CEO Lukman Mahfoedz.
Medco expects to produce 50,000 barrels per day of oil from the country starting in 2015 but halted work in February because of a civil war.