JAKARTA (TheInsiderStories) – Indonesian conglomeration firm, PT Medco Energi Internasional Tbk (IDX: MEDC), prepared capital expenditure more than US$200 million in this year, said the CEO last week. The producer also aggressively rationalizing its portfolios to maintain a healthy balance sheet.
In an official statement, the CEO, Roberto Lorato said, the company to producer oil and gas around 100 – 105 million barrels oil equivalent per day (MBOEPD) and electricity sales of 2,600 Gigawatt (GWh) in this year. Last year, the company has produced oil and gas 103 MBOEPD, whic is 115 from its abroad assets, Ophir Energy.
MedcoEnergi also has completed new developments in Bualuang – Thailand, Temelat – South Sumatra, Buntal-5 sub-sea, and Blok B in South Natuna. Other assets, Meliwis gas in East Java is estimated to be on stream by mid-year of 2020.
Other unit, PT Medco Power generated 2,600 GWh electricity sales, down 4 percent compared to previous year due to unscheduled maintenance in Sarulla Geothermal in North Sumatra. The progress the construction of 275 MW’ Riau Combined Cycle Power is targeting to operate in 2021.
The subsidiary also has signed two new Operation and maintenance contracts with state energy firm, PT Perusahaan Listrik Negara in North Sulawesi, North Sulawesi and Timor-1 in East Nusa Tenggara. Medco Power has won a bid to build and operate a 2×25 MW Solar power plant in Bali also a 26 MW capacity in Sumbawa has started construction.
Then, the minerals producer, PT Amman Mineral Nusa Tenggara (AMNT) continues to develop phase 7 with first production in mid-2020. In 2019, AMNT has extracted 130 Mlbs of copper reserves and 56 kilo oz of gold.
Hilmi Panigoro, the president director said, “Our company has strengthened its power to complete the development of Block A, Aceh and the acquisition of Ophir Energy, thereby placing MedcoEnergi as the leading energy and natural resource company in Southeast Asia.”
Lorato said, the company have completed the sale of several non-core assets, including Tunisia, Mexico Block 5, carried out monetization of AMNT shareholder loans in 2019 and 2020. The director, Anthony R. Mathias added, MedcoEnergi had sold 10 percent of PT Amman Mineral Internasional to local firm, PT Sumber Mineral Citra Nusantara (IDX: SMCN) for $200 million.
The unit has direct control 82.2 percent ownership at AMNT, the operator of Batu Hijau copper and gold mine in the Sumbawa Islands. The miner also has access to several prospects for exploration and discovery of large reserves in Elang in West Nusa Tenggara.
Beside AMN, MedcoEnergi plans to releasing its assets in Libya (Block 47). The publicly listed firm has submitted a letter requesting approval for the opening of technical information to several potential buyers of the block to the Libyan Government.
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