JAKARTA (TheInsiderStories) - An energy firm, PT Medco Energi Internasional Tbk (IDX: MEDC) has allocated a capital expenditure of US$215 million in this year, slightly dropped from a year ago of $240 million. The issuer allocated $150 million for oil and gas activities and $65 million is for the unit, PT Medco Power Indonesia.
In the official statement released today (02/17), the management said the investment calculated based on the assumption of 100 million barrels of oil equivalent per day (MBOEPD) almost flat compared to last year. President Director of the company, Hilmi Panigoro, optimistic that world oil prices will return to above US$60 per barrel in this year.
While, its subsidiary, PT Amman Mineral Nusa Tenggara (AMNT), is adjusting the work plan for the construction project of a copper mineral refining facility inline with the approval from the energy and mineral resources on the construction plan. Based on the latest Mining Law, the deadline for exporting raw and processed minerals is until 2023.
Last year, the unit PT Medco E&P Natuna has found an additional oil and gas reserves in Terubuk-5 exploration well in the South Natuna Sea B Working Area, Riau islands. The test results show that from the three intervals data obtained of gas of 19 million cubic feet per day (MMSCFD), 13.89 MMSCFD, and one barrel of condensate per day (BCPD).
This finding is part of the agency’ effort to accelerate the production targets by one million barrels of equivalent per day (BOPD) and 12,000 MMSCFD of gas in 2030. The potential for oil and gas in this area was first discovered in 1972 by the ConocoPhillips Indonesia.
Beside managed Terubuk, the unit of MedcoEnergi also operates Rimau block in South Sumatra. The oil and gas block has an area of 1,103 square kilometers with a total investment value of US$41.33 million and a signature bonus of $4 million. It was reported that block’ average oil production reached 8,200 barrels a day and gas 3.6 MMSCFD.
The revenue sharing contract is an extension contract with Medco E&P’ 95 percent interest participation holders and 5 percent regional mining and energy company. This contract is valid for 20 years, effective from 2023 to 2043. Currently, the parent in the process to seeks a fresh funding about $150 million from the rights issue program in the third quarter of 2020.
The oil and gas producer plans to offer as much as of 7.5 billion new shares and has gotten approval from the shareholders. Panigoro explained, the proceeds from the rights issue will be used for working capital. The producer also aggressively rationalizing its portfolios to maintain a healthy balance sheet.
The CEO, Roberto Lorato, asserted MedcoEnergi to producer oil and gas around 100 – 105 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.
The energy producer 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.
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.
While, the holders of participating rights in Block B are Medco E&P Natuna Ltd., (40 percent), PT Medco Daya Abadi Lestari (35 percent), and Prime Natuna Inc., with participating interests of 25 percent. The contract is still valid until 2028.
Written by Editorial Staff, Email: theinsiderstories@gmail.com
