Medco needs US$90 million

JAKARTA (JP): Publicly-listed oil and gas company Medco Energy Corporation said on Thursday that it needs an investment of US$90 million to increase production in the Kaji Semoga oil field in South Sumatra to 35,000 barrels per day (bpd) within the next two years.

The field currently produces 20,000 bpd.

Company president J.S. Karamoy did not specify how the company intends to raise the funds in a press release on Thursday.

He said the company had thus far invested $56 million to develop the oil field and had drilled thirty six oil wells and laid a 51-kilometer pipelines to an oil pooling station.

The Kaji Semoga field was billed as the country's largest oil find in 15 years when it was discovered by Exspan Sumatra, a Medco subsidiary, in 1996. (jsk)