Indonesia’s Medco Energi has initiated international arbitration at the International Criminal Court by filing a case against the National Oil Corporation to enforce its contractual rights under the Exploration and Production Sharing Contract as well as to protect its right to benefit from its investments in Libya.
According to the annual report of the Indonesian Medco Company for 2021, the International Court began on March 15, 2022, to take the arbitration decision in response to the attempts of the National Oil Corporation to circumvent its obligations with the Indonesian company.
In 2013, the company announced the official establishment of the Joint Operating Company for Area 47 with its partners, the National Oil Corporation and the Libyan Investment Authority, and in 2020, Medco was reportedly seeking to divest its interests in the region.
The Indonesian company confirmed that since acquiring its participating share in Area 47 in Libya from 2005 until 2009, has drilled, along with Verenex, 20 wells and 18 exploration wells that show evidence of oil, as the exploration success rate reached 90%, which is well above the average global pass rate.
According to a D&M report dated September 30, 2008, the total reserves of 282 million barrels of oil equivalent and the total contingency resources of 211 million barrels of oil equivalent were estimated in Area 47. After the acquisition of Verenex’s stake in Area 47 by the Libyan Investment Authority in 2009, Medco owns 50% of the participating stake in the exploratory area 47.
Medco said on its website that it is discussing with the National Oil Corporation a plan for the fast-track project of oil production facilities.