Indonesia Medco says plans $1.7 bln energy investment

JAKARTA, March 30 (Reuters) - Indonesia's energy firm PT Medco Energi International Tbk (MEDC.JK) plans to invest $1.7 billion between 2010-2014 in several major projects, including oil development in Libya, a company offical said.

Medco Energi's area 47 oil project in Libya is expected to produce between 50,000-100,000 barrels per day (bpd) and is due to start production in 2014.

"We are waiting for approval from the Libyan government for commercialisation of the area 47 block. We will fund the project with a loan of about $200 million," Medco President Director Darmoyo Doyoatmojo told reporters late on Monday.

"Medco will also apply to the Libyan government to operate the area 47 project," he added.

Doyoatmojo said the company was still optimistic that its liquefied natural gas (LNG) project in Sulawesi would go ahead despite issues over where the gas will be sold and whether the project would be economic.

Medco, together with state oil firm Pertamina, and Japan's Mitsubishi Corp (8058.T), had agreed previously to build the Donggi-Senoro LNG plant in Sulawesi, with a capacity of 2 million tonnes per year.

The government wants the gas to be sold only to the domestic market whereas the partners want to export LNG, which would fetch a higher price and which they say is essential if the project is to be economic.

"This (Sulawesi LNG) project will provide benefits not only for the companies involved but also for the government," he said, adding that Medco still expects the project to start production in 2014.

Other Medco projects include the Sarulla geothermal power plant in North Sumatra, with capacity of 330 megawatts, which is expected to start operations in 2014, and block A natural gas field project in Aceh.

Doyoatmojo said the block A project will supply natural gas to a local fertiliser firm in Aceh and currently is waiting for approval by Aceh's governor.

The company booked a net profit of $19.2 million in 2009, down 93.1 percent from $280.2 million in 2008. It said the drop was due to lower oil prices while crude oil production fell to 35,000 barrels per day (bpd) in 2009, from 45,000 bpd in 2008. (Reporting by Muklis Ali; Editing by Sara Webb)