JAKARTA (TheInsiderStories) - PT Medco Energi Internasional Tbk (IDX: MEDC) through its unit, PT Medco Power Indonesia (MPI), launched the Electric Vehicle (EV) Ecosystem Program and marked the group entered these new businesses. As first step, the subsidiary plans to built a general EV charging station in Jakarta areas.
“This is our pilot program of our business expansion in the electric vehicle sector. We try not only provide the charging stations but also to one stop solutions, including vehicles, the IT ecosystem, and of course we want to expand and have operational areas in Batam and Bali,” said the MPI’ president director, Eka Satria, in a virtual launch event on Friday (02/05).
In June and December 2020, MedcoEnergi has signed an agreement with state-owned energy producer, PT Perusahaan Listrik Negara, and tech-firm, Grab Indonesia, to develop the EV charging stations across the country. MPI also signed with three other subsidiaries and PT Bank Mandiri Tbk (IDX: BMRI) to encourage the faster adoption of EV technology.
The expansion in Bali, said Satria, is also in line with the solar power plant project that is being carried out by the company in Bali with capacity 2×25 megawatts (MW) and 1×26 MW in Sumbawa. With the charging station from MPI, there are now a total of 102 operating units at 74 points across the archipelago.
The management MedcoEnergi has budgeted a capital expenditure around $180 million for PT Medco E&P Indonesia and $60 million for MPI. Until last year, the oil and gas producer has spent $194 million for the two subsidiaries. The company also continued a number of oil and gas also an electricity projects during 2020.
In this year, the group will focus on the exploration of Block B South in Natuna Sea which has been carried out since 2020. In addition, MPI will also complete the Riau power plant project with a commercial operation target by mid-2021. The company also aimed to develop its copper mining business through PT Amman Mineral Nusa Tenggara.
The other unit, PT Medco E&P Natuna has found an additional oil and gas reserves in Terubuk-5 exploration well in the South Natuna Sea, 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).
The potential for oil and gas in this area was first discovered in 1972 by the ConocoPhillips Indonesia. Beside managed Terubuk, the unit also operates Rimau block in South Sumatra. The oil and gas block has an area of 1,103 squaremeters with a total investment value of $41.33 million and a signature bonus of $4 million.
It was reported that Medco E&P Natuna’ average oil production reached 8,200 barrels a day and gas 3.6 MMSCFD. The revenue sharing contract is an extension contract with 95 percent interest participation holders and 5 percent for regional mining and energy company. This contract is valid for 20 years, effective from 2023 to 2043.
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 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 company 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 MPI and non-consolidated ownership in Amman Mineral.
While, the holders of participating rights in Block B are Medco E&P Natuna (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.
US$1: Rp14,000
Written by Editorial Staff, Email: theinsiderstories@gmail.com
