JAKARTA (TheInsiderStories) – PT Medco Energi Internasional Tbk (IDX: MEDC) seeks a fresh funding US$150 million from the rights issue program in the third quarter (3Q) of 2020, said the president director yesterday (06/25). The oil and gas producers plans to offer as much as of 7.5 billion new shares and has gotten approval from the shareholders.
Hilmi Panigoro, President Director of MedcoEnergi said in an official statement, the proceeds from the rights issue will be used for working capital. This year, the company prepared capital expenditure around $240 million, which is around $180 million was allocated for the oil and gas segment and $60 million for the electricity segment.
Of the total fund $117 million will distributes for the production sharing contract projects (PSC), $21 million for non-PSC projects, and $42 million for exploration costs. MedcoEnergi hopes to produce oil and gas of 105 million barrels of oil equivalent equivalent per day in 2020.
The producer also aggressively rationalizing its portfolios to maintain a healthy balance sheet. According to the CEO, Roberto Lorato, the company to producer oil and gas around 100 – 105 million barrels oil equivalent per day (MBOEPD) and electricity sales of 2,600 Gigawatt in this year. Last year, the company has produced oil and gas 103 MBOEPD, which 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. The progress the construction of 275 MW’ Riau Combined Cycle Power is targeting to operate in 2021.
The subsidiary, PT Medco Power 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. The unit 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 the 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.
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 company has sold a 10 percent stake in PT Amman Mineral Internasional (AMI), the operator of Batu Hijau copper and gold mine in West Nusa Tenggara to PT Sumber Mineral Citra Nusantara for $202 million. The buyer was suspected related to Bakrie Group.
The share divestment made the company’ ownership in AMI lowered to 29.35 percent from initially 39.35 percent. The unit control 82.2 percent of AMNT shares, covering 25 thousand hectares in Sumbawa, West Nusa Tenggara after has been acquired in November 2016. The company was originally named PT Newmont Nusa Tenggara.
Beside AMN, the producer 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.
MedcoEnergi is and energy and natural resource company in Southeast Asia which is listed on the Indonesia Stock Exchange. The company has three business segments in oil and gas, power and mining. The business group operates gas, geothermal and water power plants in Indonesia through PT Medco Power and non-consolidated ownership in Amman Mineral.
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