Indonesia’s Medco Energi International is preparing to establish a joint venture for oil and gas exploration in Libya in October.

Medco will own a 25 per cent stake in the joint venture, while the Libyan government will take 50 per cent. Canada’s Verenex Energy will take the remaining 25 per cent.

“The joint operating company will develop the project, while Medco would build supporting facilities” says, Medco president Lukman Mahfoedz, The Jakarta Globe reports.

Medco suspended exploration at the Block-47 concession following Libya’s nine-month conflict in 2011. A preliminary engineering study for the project, which could see oil production of up to 50,000 barrels a day (b/d) was launched at the end of the year.

The project is expected to cost a total of $800m, with $200m allocated for the next four years.

Verenex and Medco were awarded exploration and development rights for the block in the Ghadames basin, about 180 kilometres southwest of Tripoli in 2005.