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Energy firm PT Medco Energi Internasional is seeking
verification from its Canadian partner, Verenex Energy Inc., over an
announcement that a "big" oil reserve has been found in a Libyan field
where Verenex and Medco hold the exploration rights.
Bloomberg reported Monday that Verenex had discovered the oil field in
Libya, citing a statement on the website of Libya's state-run energy
company, National Oil Corp.
"First indications show that it may be a big find," said the website,
without further elaboration.
Under the agreement between Verenex and Libya, Verenex will get 13.7
percent of any output and Libya's National Oil 86.3 percent. Verenex
won the right to drill in the block in 2005, in partnership with Medco,
with each holding a 50 percent working interest.
However, the find will need to be verified first before it can be
officially announced, Medco corporate secretary Andy Karamoy told The
Jakarta Post on Tuesday.
While personally acknowledging the reports of the find, Andy said that
so far "we have not received an official report from Verenex."
He said that Medco would avoid jumping to conclusions as the market
would only be interested in verified information.
If the find turns out to be true, and the oil reserves verified, it
will place Medco in a strong position, especially after it revealed a
plan in December to expand its oil exploration activities into the Gulf
of Mexico.
The exploration rights to an area covering 6,182 square kilometers were
granted to Verenex and Medco in January 2005 during Libya's first ever
auction after the U.S. lifted two-decade-long sanctions that were
imposed on Muammar al-Qaddafi's regime on accusations that it was
supporting terrorism.
The exploration rights will expire in 2035.
According to Bloomberg, Libya is the eighth-largest producer of the
12-member Organization of Petroleum Exporting Countries (OPEC), and
boasts total proven oil reserves amounting to 39 billion barrels.
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