Our Commitment for Sustainability

Highest Recognition from the Ministry of Environment

MedcoEnergi has been awarded yet again for the fourth year with the most prestigious GOLD PROPER award by the Government of Indonesia through the Ministry of Environment for "beyond compliance" environmental management and sustainability programs in our Rimau asset, South Sumatera. This makes us the first and only E&P company recognized with the highest rank for such excellence.

Strengthening Our Producing Portfolio

Senoro Gas Development, Central Sulawesi, Indonesia

Senoro Gas Development, one of MedcoEnergi's major developments, was once considered stranded gas due to its remote location and unavailability of infrastructure for the gas captives. We successfully develop and monetize the abundant gas resources into high quality markets that will take gas up to 310 mmscf per day.

Delivering Projects Development

Donggi Senoro LNG, Central Sulawesi, Indonesia

The Donggi Senoro LNG will be the fourth LNG plant in operation in Indonesia and the first LNG project built by national companies (MedcoEnergi, Pertamina) and partner Mitsubishi. The plant has a total capacity of 2 million tons of LNG per annum with gas supply from the Senoro-Toili gas field, in which MedcoEnergi also participate.

Our Operational Excellence

Karim Small Fields, Oman

MedcoEnergi has successfully provided the technical expertise to Petroleum Development Oman, a joint venture company between the Government of Oman and Shell, such that the production in Karim Fields reached over 22,000 bopdin 2012. This is more than double the rate of 9,000 bopd when Medco was initially assigned in 2006. This is testament to MedcoEnergi's core competence in harnessing the optimum production rate from mature fields, in Indonesia and overseas.

Clean Energy for a Cleaner World

Sarulla Geothermal, North Sumatera, Indonesia

The construction of Sarulla Geothermal Power Plant has started in 2014, and will produce geothermal power for 3 x 110 MW electricity. As the world's largest single-contract geothermal power project upon completion, the plant is envisioned to provide clean and sustainable electricity in Indonesia and expected to reduce carbon dioxide emission up to 1.3 million tonnes a year.

Monetizing Reserves

Block A, Aceh, Indonesia

In January 2015, MedcoEnergi inked a Gas Sales Agreement of over US$ 2 billion in value, monetizing 200 BCF reserves from the Block A Production Sharing Contract in Aceh Province, Indonesia. The customer is the state owned company Pertamina, with an agreed gas price of US$ 9.45 per MMBTU. This contract demonstrates the Company’s support to the development of the Indonesian domestic gas market, at the same time creating value for the company and establishing a vital economic presence in the province of Aceh.

Stock

30/03/2015
MEDC-IDX
(IDR)
3,115
Market Cap
(Trilion IDR)
10.4
Volume
(lot)
9,863

Whistleblower

Ensuring MedcoEnergi is a safe, fair and honest place to work.
Thursday, 19/03/2015 WIB Theft of Oil and Gas Endangers Society

Oil and gas company often has to deal with the theft of crude oil and gas in its area of operations. PT Medco Energi Internasional Tbk through its subsidiary PT Medco E&P Malaka (“ ...

Sunday, 08/03/2015 WIB Medco E&P Indonesia Localizes JR-57 Well Fire, Block A – Aceh

The safety of the people, environment and employees are a top priority for PT Medco Energi Internasional Tbk and its subsidiary PT Medco E&P Indonesia

Tuesday, 27/01/2015 WIB MedcoEnergi Commences Development of Block A

PT Medco Energi Internasional Tbk through its subsidiary PT Medco E&P Malaka (“Medco E&P”) (together as “MedcoEnergi” or the “Company”) opened the year of 2015 with ...

Tuesday, 02/12/2014 WIB For Four Consecutive Years, MedcoEnergi Achieves Proper Gold

2014 is a year full of achievement and pride for environmental management in Medco E&P Indonesia operation areas. Today, PT Medco Energi Internasional Tbk, thro ...

Thursday, 20/11/2014 WIB MedcoEnergi Signs A New Exploration & Production Sharing Contract in Oman

PT Medco Energi Internasional Tbk, through its wholly-owned subsidiary, Medco Arabia Ltd. is pleased to announce a majority participation in a new ...

Wednesday, 29/10/2014 WIB MedcoEnergi’s 3Q 2014 Operational and Financial Results

PT Medco Energi Internasional Tbk has announced its consolidated financial statements for the period ending 30 September 2014 (“3Q 2014”). In 3Q 2014, the Comp ...

Friday, 17/10/2014 WIB MedcoEnergi Continues to Supply Domestic Gas Demand

In the past few years, the gas supply in Indonesia has shown a decline due to natural decline of gas production from the fields, while gas demand is steadily increasing ...

Monday, 29/09/2014 WIB MedcoEnergi Again Discovers Oil and Gas in Indonesia and Overseas

MedcoEnergi has successfully explored and discovered additional oil and gas from the Hijau-2 well in South Sumatera Block, Indonesia and from the O2 well i ...

Tuesday, 01/07/2014 WIB MedcoEnergi Continued Revealing More Hydrocarbon Volumes In Libya

MedcoEnergi is very pleased to announce a successful completion of the 1st appraisal well drilling in Libya Area 47 drilled after Libya Revolution, from a ...

Wednesday, 25/06/2014 WIB Medco E&P Indonesia Facing Operational Blocked In Its South Sumatera Oil Field

MedcoEnergi has shut down its oil production from Meta and Lica oil wells located in Desa Danau Cala, Kec. Lais, Kab. Musi Banyuasin (Muba), S ...

Theft of Oil and Gas Endangers Society

Aceh, 19 March  2015 - Oil and gas company often has to deal with the theft of crude oil and gas in its area of operations. PT Medco Energi Internasional Tbk through its subsidiary PT Medco E&P Malaka (“Medco E&P”) (together as “MedcoEnergi” or the “Company”), the operator of Block A PSC, located in East Aceh, where relics of some old wells from the previous operator are in existence Old wells have been shut down and are not in operations. To prevent theft and illegal use, Medco E&P Malaka continuously reaches out to the local community to provide information and make appeals regarding the dangers and risks of conducting oil and gas wells illegally.

Despite the above effort, theft still occurs, as happened on 8 March 2015 in the JR-57 well. The JR-57 well has been closed down by the previous operator since 2000. The incident was resolved quickly by the Company by performing isolation, outages and repairs. The JR-57 well has been made safe and re-closed after the damaged main valve and safety valve was successfully replaced. A concrete fence will also be erected to further ensure the security of the well. The JR-57 well incident handling involved support from the East Aceh District Government, the Fire Department, and local village officials, as well as the Contractor (PSC) which also operates in the surrounding area. The fire did not cause casualties nor pollution of the environment.

"We would like to thank all those who have provided support and assistance to overcome this incident. Utilization of wells illegally, including illegal oil theft, is a very dangerous and high risk activity. In addition to endangering the perpetrators, such actions can harm the public and the environment because of the environmental impact. We call for this illegal activity to be stopped, so that the safety and security of the public, workers and the environment can be maintained, "said Herman Hussein, General Manager of PT Medco E & P Malaka.

Block A, Gas Project

PT Medco E & P Malaka, the operation of Block A PSC, is in development of gas reserves that will be used to meet the needs of domestic gas in the provinces of Aceh and North Sumatra, primarily to meet the needs of local industry and fertilizer plant. The signing of the Gas Sales and Purchase Agreement (GSPA) with PT Pertamina (Persero) was conducted in January 2015. The target of first gas supply will begin in 2017 and continue for a period of 13 years, with a gas volume of 198 TBTU and daily gas supply for 63 BBTU per day. "We expect the support of all parties so that the Project Block A can immediately run and the investment climate can be maintained conducive so that the project can provide important contribution to the Government of Aceh in general and in particular to the Government of East Aceh," said Teguh Imanto, the Senior Manager of Relations.

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Medco E&P Indonesia Localizes JR-57 Well Fire, Block A – Aceh

Aceh, March 8, 2015 – The safety of the people, environment and employees are a top priority for PT Medco Energi Internasional Tbk and its subsidiary PT Medco E&P Indonesia ("Medco E&P" or the "Company"). Following up on information from the field, the Company confirmed that on March 8, 2015 at 04:00 am there was a fire at JR-57 gas well, Block A, located in Blang Nisam village, Indra Makmue District, East Aceh. This well is a mature well that had been closed by the operator prior to Medco E&P operatorship and has not produced since 2000. The well location is also a fair distance away from community settlement.

Allegedly, the fire was caused by the actions of irresponsible persons who intend to illegally activate this well and produce from it. The company has coordinated with the police and East Aceh Local Government to enforce safety and security procedures.

Until the issuance of this press release, there were no reports of casualties or environmental pollution. "Our priority now is the safety and security of the public, workers and the environment. The Company has been cooperating with related parties to undertake the necessary steps to extinguish this fire as soon as possible," said Teguh Imanto, Senior Manager of Relations, Medco E&P.(***)

 

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MedcoEnergi Commences Development of Block A

Jakarta, 27 January 2015 - PT Medco Energi Internasional Tbk through its subsidiary PT Medco E&P Malaka (“Medco E&P”) (together as “MedcoEnergi” or the “Company”) opened the year of 2015 with the important signing of Gas Sales and Purchase Agreement (GSPA) Block A, Aceh and Amendment GSPA South Sumatera Block. The total gas volume is over 200 Trillion British Thermal Unit (TBTU), equivalent to the total gas sales value of over US$ 2 billion. The signing was held today at the 2015 Indogas Conference and Exhibition. Both GSPAs demonstrate the Company’s commitment to continuously develop the Indonesian gas market by supplying gas to Aceh, North Sumatera and South Sumatera areas.

The GSPA with Pertamina for Block A will be used to supply gas demand in Aceh and North Sumatera provinces, especially for fertilizer and local industry. The final investment decision (FID) is targeted by mid 2015 and the gas supply is slated to commence by 2017 for the contract period of 13 years, with a total gas volume of 198 TBTU and a daily gas supply of 58 BBTU per day. The agreed gas price is US$ 9.45 per Million Metric British Thermal Unit (MMBTU) at the tie-in point of Arun Belawan gas pipeline. In addition to Pertamina, the Company will sign a GSPA with PT PLN (a state-owned electricity company) for a volume 5 to15 BBTU per day by mid 2015.

The participating interest in this Block A PSC is MedcoEnergi 41.67% (as the operator), KrisEnergy 41.66%, dan Japex 16.67%. The Block A gas development is one of the Company’s major projects. The GSPA is expected to bring revenues of US$ 2 billion to the Government of Indonesia and PSC Contractors with the distribution to the Government of US$ 492 million, to the PSC contractors of US$ 209 million and also the cost recovery of US$ 1.3 billion.

The Company also signed the GSPA amendment with Perusahaan Daerah Mura Energi to fulfill the gas needs for electricity in Musi Rawas Regency, South Sumatera. Medco E&P will supply gas from South Sumatera Block with a total contract volume of 8,750 Billion British Thermal Unit (BBTU) for 11 years with a daily gas supply of 2.5 BBTU per day. MedcoEnergi has successfully increased the gas price from US$ 3.00 per MMBTU to US$ 6.50 per MMBTU with an escalation factor of 2.5% per year. This GSPA is expected to bring revenues of US$ 66 million to the Government and PSC contractors.

Lukman Mahfoedz, Presiden Director & CEO MedcoEnergi, cited, “With the above signed gas sales contract, MedcoEnergi’s revenues will be less dependent to the global oil price fluctuation since the gas price is not linked to oil price. As Senoro Gas and Block A Gas projects complete in 2015 and 2017 respectively, the ratio of the Company’s revenues from oil and gas sales will be around 50:50.” Lukman also added, “The commencement of Block A project will provide a significant contribution to local government and also expanding the employment opportunity in the surrounding community.”

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For Four Consecutive Years, MedcoEnergi Achieves Proper Gold

2014 is a year full of achievement and pride for environmental management in Medco E&P Indonesia operation areas. Today, PT Medco Energi Internasional Tbk, through its subsidiary PT Medco E&P Indonesia has received the PROPER Gold (Company Performance Rating Program), the highest achievement given by the Ministry of Environment and Forestry for environmental and social management, especially in Rimau Block operation area. This is the fourth consecutive year Medco E&P has received the PROPER Gold, the first and only oil and gas company in Indonesia thathas received the award and the only one among various industries that implements a responsible and sustainable environmental management beyond compliance.

MedcoEnergi proudly announces that three other operating blocks have also won the PROPER Green, one rank below the Gold rank in this year, i.e. South Sumatra Block for the fifth consecutive year, Lematang Block for the second consecutive year and Kampar Block for the fifth consecutive year.

The PROPER Award was presented by the Vice President of the Republic of Indonesia, Jusuf Kalla, at the Environment and Forestry Awards Night in Jakarta, 2 December 2014. This rating is awarded through a series of assessment and several field trips. All stages of the assessment were carried out by the Ministry of Environment and Forestry team, Regional Environmental Agency as well as university representatives.

"This achievement is a true recognition of the Company’s commitment , which engages in business activities to the highest ethical and environmental standards at all times. The programs we run are a concrete manifestation of our considerable concern and efforts towards environmental sustainability and empowerment of local communities. Among others, greening the operation area, domestic waste treatment management, organic paddy fields, organic plant, and the empowerment of women through medicinal plant gardens," said Frila B. Yaman, Director & COO MedcoEnergi/President Director of Medco E&P.

Lukman Mahfoedz, President Director & CEO MedcoEnergi said, "This achievement confirms that MedcoEnergi, as a national private oil and gas company (PMSN), is leading the oil and gas industry, particularly in environment and social areas. . With this success, and supported by our proved long track expertise and experience in managing oil and gas fields, the Company expects that the Government would provide more opportunity to MedcoEnergi to operate the upcoming expiring exploration and production blocks in Indonesia ".

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MedcoEnergi Signs A New Exploration & Production Sharing Contract in Oman

PT Medco Energi Internasional Tbk, through its wholly-owned subsidiary, Medco Arabia Ltd. is pleased to announce a majority participation in a new Exploration & Production Sharing Agreement in Oman, Block Oman 56 (“Oman 56” or the “Contract”). The Contract was signed by the Minister of Oil and Gas of Oman, Dr. Mohammed bin Hamad Al Rumhy. The Contract is between the Government of Oman and the Company, together with a local partner Intaj LLC (“Intaj”). In this consortium, Medco has the majority working interest and the operatorship of Oman 56.

Oman 56 is located in the prolific Oman Salt Basin. With an area of 5,808 square kilometers and three identified technical discoveries, it has an estimated oil in place of 370 million barrels with six other potential prospects. MedcoEnergi is committed to drill three exploration wells in the first exploration period.

Oman 56 will add to MedcoEnergi’s international portfolio with assets in Oman, Libya, Yemen, Tunisia, USA and Papua New Guinea. MedcoEnergi has been in Oman since 2006 as operator of the Karim Small Fields (KSF) Service Contract. Oman 56 is located adjacent to KSF with similarities in geology and advantage in synergy of operations.

Lukman Mahfoedz, President Director & CEO of MedcoEnergi said, “Oman 56 is one of the biggest exploration acreages in Oman and has a large hydrocarbon potential. It further asserts our presence in the Middle East & North Africa region, specifically in Oman. I am confident that in this block we can repeat the success story of our KSF operations, given our outstanding operational performance and very good safety track record so far.” Lukman added that “This acquisition is in line with the Company’s strategy to strengthen the E&P portfolio of assets through high-graded exploration activities, in support of our business growth in the near future.”

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MedcoEnergi’s 3Q 2014 Operational and Financial Results

PT Medco Energi Internasional Tbk has announced its consolidated financial statements for the period ending 30 September 2014 (“3Q 2014”).

In 3Q 2014, the Company has succeeded again in exploration activity by finding new oil and gas reserves at Hijau-2 well, South Sumatera Block, Indonesia as well as at P2 and O2 wells in Area 47, Libya. MedcoEnergi has also successfully completed the acquisition of 100% shares of Storm Ventures International (Barbados) Ltd. with Chinook Energy, Inc. for the ownership and participating rights in eight E&P working areas in Tunisia. Furthermore, the Company continuously demonstrates its commitment to develop the domestic gas market by signing two Gas Sales and Purchase Agreements (GSPA) with PT PLN Persero and PT MEPPOGEN. These gas supplies will be used for power generation to meet electricity demands in the South Sumatera and North Kalimantan regions respectively.

As of this quarter, MedcoEnergi has booked total revenue of US$ 552 million. The oil and gas exploration & production sector (“E&P”) contributed 94% to this amount, or equivalent to US$ 518 million, with a total volume of oil and gas of 53,300 barrels of oil equivalent (BOE) per day for the period of 1 January – 30 September 2014. In accordance with the world oil price trend, the average oil price for the period was US$ 106.3 per barrel which was lower than the price in the same period of last year of US$ 108.5 per barrel. In contrast, the average gas price rose by 11% to US$ 5.60 per MMBTU from US$ 5.04 per MMBTU in 2013 as a result of the Company’s success in renegotiating gas sales contracts.

The Company recorded gross profit of US$ 199 million and operating income of US$ 138 million in 3Q 2014. The Company continues with its cost efficiency initiative and has succeeded in lowering operational costs by 10% from US$ 68 million for the third quarter of 2013 to US$ 61 million for the same quarter in 2014, and recorded an EBITDA (Earnings before Income, Taxes, Depreciation and Amortization) of US$ 215 million. In 3Q 2014, the Company booked profits attributable to the parent (Net Profit) from operations of US$ 9.5 million, a relatively stable performance compared to the same period of last year. These financial results have not reflected the positive contribution of production and financial performance from the Company’s assets in Tunisia, which will be recorded starting in October 2014.

President Director and CEO of MedcoEnergi, Lukman Mahfoedz commented that “The completion of Senoro Project has reached 87% and will reach its Mechanical Completion in early 2015. Meanwhile, the construction of Donggi Senoro LNG plant was completed and is currently under a commissioning stage. The completion of these two projects reflects the Company’s ability to realize its major projects which will be subsequently followed by other major projects such as Block A, Simenggaris, Libya and Tunisia in 2017 – 2019. On 17 September 2014, the Company has received the 2nd Commerciality Declaration approval upon the successful exploration and appraisal programs in Area 47, Libya. This Commerciality Declaration will add 74 MMBOE (gross) to the Company’s 2P Reserves (Proven & Probable), in addition to 208 MMBOE (gross) from the 1st Commerciality Declaration approval which was obtained in December 2011. Lukman closed by stating that “I am confident MedcoEnergi will grow along with the completion of Senoro Gas Projects in 2015, followed by other Major Projects started in 2017 onwards.”

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MedcoEnergi Continues to Supply Domestic Gas Demand

In the past few years, the gas supply in Indonesia has shown a decline due to natural decline of gas production from the fields, while gas demand is steadily increasing to support the economic growth and infrastructure development including power generation. To affirm its commitment to continuously develop the Indonesian gas market, PT Medco Energi International Tbk, through its wholly-owned subsidiary PT Medco E&P Indonesia has signed two Gas Sales and Purchase Agreements (GSPA) with PT PLN Persero and PT MEPPOGEN on Friday, 17 October 2014 in Jakarta. The two GSPAs will supply gas for power generation in the North Kalimantan and South Sumatera areas respectively.


MedcoEnergi supplies gas to PT MEPPOGEN’s Gunung Megang Gas-Fired Power Plant in the Muara Enim Regency. Total gas volume of 6,6 Trillion British Thermal Units (TBTU) will be supplied from the South Sumatra PSC block operated by the Company. The supply period will be 21 months or until the said total gas amount is utilized. The agreed gas price is US$ 7.32 per Million Metric British Thermal Unit (MMBTU) for the year 2014, escalating 3% per year. The GSPA is expected to bring revenues, approximately at US$ 43 million to the Government of Indonesia and the PSC Contractor.


The Company, through its Joint Operating Body Pertamina Medco E&P Simenggaris (“JOB-PMEPS), has also signed a GSPA with PT PLN (Persero) to supply 805 BBTU of gas. The contract period is five years with the agreed gas price of US$ 5.52 per MMBTU. The gas will be supplied from South Sembakung gas field in Simenggaris Block to generate electricity in the Tana Tidung Regency, North Kalimantan. The GSPA is expected to bring revenues of US$ 3 million to the Government of Indonesia and PSC Contractors.


Lukman Mahfoedz, President Director & CEO of MedcoEnergi, cited “MedcoEnergi continues to actively explore to discover more oil and gas reserves as well as to supply more gas to the domestic market. In the last two years, the Company has succeeded in finding new gas reserves from its exploration operations, such as Matang (Block A PSC, Aceh), Bajul Besar (Simenggaris PSC, North Kalimantan) and recently Hijau (South Sumatra PSC, South Sumatera).

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MedcoEnergi Again Discovers Oil and Gas in Indonesia and Overseas

MedcoEnergi , has successfully explored and discovered additional oil and gas from the Hijau-2 well in South Sumatera Block, Indonesia and from the O2 well in Area 47, Libya.

Hijau-2 Well, South Sumatera PSC, Indonesia

The Hijau-2 delineation well, located in the South Sumatra PSC, was drilled to a vertical depth of 5,695 ft. (1,736 meters), proving a 35-meter gas column in the Baturaja limestone formation. A Drill Stem Test confirmed a gas flowrate of 5.05 million standard cubic feet per day (MMSCFD) through a 24/64 inch choke.

MedcoEnergi describes the well as a “prospect opener” in the still prolific South Sumatra basin, where the Company has substantial acreage. This discovery is assessed as commercially viable, South Sumatera being an area with existing infrastructure and high gas demand. It will increase the Company’s gas production for the domestic market.

O2 Well, Area 47, Libya

O2 well was spudded on 23 May 2014 and drilled to a total depth of 10,780 feet. Initial tests demonstrated the well flowing 3,300 barrels of oil per day and 140,000 standard cubic feet per day of gas through a 48/64 inch choke in the Top Lower Akakus formation. The O2 well location that lie outside reservoir closing contour proved the existence of stratigraphic element that may have connection to multiple structures in the area. The discovery of O2 well and P2 well in last July 2014 again proved the prolific hydrocarbon area of Ghadames Basin in Area 47, where large oil and gas reserves was discovered with a 90% exploration success rate (18 out 20 exploration wells discovered oil and gas).

Furthermore, on 17 September 2014 the Government of Libya declared the commerciality of B, C and J structures in Area 47. MedcoEnergi, with its partners National Oil Corporation (NOC) Libya and Libyan Investment Authority (LIA), will commence this development together with the A, D and F structures, previously declared commercial in 2011. Combined, the total estimated oil and gas recoverable reserves is 250 MMBOE.

Lukman Mahfoedz, President Director and CEO MedcoEnergi, stated, “These successes prove our Company’s strong capability in exploration with more and more discoveries of new oil and gas resources in Indonesia as well as overseas. This achievement will contribute to MedcoEnergi’s growth by adding oil and gas reserves and increasing the Company’s reserve life index.”

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MedcoEnergi Continued Revealing More Hydrocarbon Volumes In Libya

MedcoEnergi is very pleased to announce a successful completion of the 1st appraisal well drilling in Libya Area 47 drilled after Libya Revolution, from a series of appraisal wells drilling program intended to confirm the extent of 10 structures out of 16 structures discovered during pre-Revolution. As previously announced, MedcoEnergi and its partners are proceeding with the development project for six discovered structures. This 1st post-Revolution drilling of appraisal well, named P2 of P structure, has encountered two hydrocarbon-bearing zones with a total net pay of 26 feet at Top Lower Acacus and Mamuniyat formations. The P2 well testing conducted at Mamuniyat formation resulted in a gas flow of 6.5 MMSCFD through a 48/64-inch choke. Furthermore, based on the information obtained from this P2 appraisal well, it is highly likely that this P structure is in connection with the H structure that was discovered through exploration well H1 drilled in 2008.

This P-H structure connection resulted in estimated unrisked mean recoverable resources at about 69 MMBOE. Combined with the Top Lower Acacus formation, the recoverable resources can increase to 93 MMBOE, with an upside potential up to 149 MMBOE.

Additionally, MedcoEnergi has successfully completed the 2nd and 3rd appraisal well drillings (A2 and O2 wells) within the planned budget and schedule. The A2 well was spudded-in on 2 April 2014 and reached total depth of 10,600 ft in less than 40 days with strong indications of hydrocarbon presence and the well test is now being prepared. The O2 well was spudded-in on 23 May 2014 and reached the target depth of 10,780 ft of Mamuniyat formation in only 34 days.

Currently MIVL is utilizing one drilling rig and one completion rig, employing around 128 people at site with no LTI since the beginning of the field operations. In 2014-2015, MIVL, together with its partner LIA (Libya Investment Authority) plans to drill for seven more appraisal wells. The Company’s drilling team has demonstrated cost-efficient drilling operation even within this politically-dynamic period of Libya. Total drilling cost for reaching nearly 11,000 ft of those three appraisal wells was below US$ 9 million per well. 

The appraisal program done by MedcoEnergi in Libya Area 47 has again proved the prolific nature of Ghadames Basin (that extended within three countries, from Algeria to Tunisia to Libya). It is with a great pleasure to mention that the majority of area of Storm Ventures International portfolio in Tunisia, which was just purchased by MedcoEnergy from Chinook Energy, lies in the same Ghadames Basin.

Lukman Mahfoedz, President Director & CEO MedcoEnergi, cited “Alhamdulillah (thanks to the God), we were not only able to resume field operations in Area 47 Libya, but also made great success in appraisal well drilling program. I am very enthusiastic with this success as it would add more oil and gas reserves to the Company from the Libya asset. It also demonstrates our strong capability in running E&P operations in overseas, not only in technical capability but also in operation excellence and safety record at site.” Lukman also added that “The development of the Company’s major project in Libya is also progressing very well.  Nafusah Oil Operations B.V, as the Operator of the development project, is currently working on FEED (Front-End Engineering Design) conducted by the Consortium of Taknia Libya Engineering Company (Libya) and Foster Wheeler (UK), for the Phase-1 development of 50,000 BOPD and 50 MMSCFD of oil and gas producing facilities. The facilities will monetize around 250 MMBOE discovered reserves and is slated for its completion in 2017.”

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Medco E&P Indonesia Facing Operational Blocked In Its South Sumatera Oil Field

MedcoEnergi has shut down its oil production from Meta and Lica oil wells located in Desa Danau Cala, Kec. Lais, Kab. Musi Banyuasin (Muba), South Sumatera, for security reasons. The production was brought to a standstill due to a road blocking incident by a group of people who disturbs crude oil transportation from the oil wells to Matra oil gathering station in Musi Banyuasin.

The oil production from Meta and Lica wells are approximately 1,000 barrel per day, which accounts for 2% of MedcoEnergi total oil and gas production in Indonesia. The wells are belongs to the government and 80% of its production is owned by the government. The closing down of this production operation has been reported to SKKMIGAS, a government agency that oversees upstream oil & gas activities. The Company has also reported the road block incident to the police department including Polres, Polda, as well as the Commander of the Military District Commando (Dandim) 0401 Musi Banyuasin. MedcoEnergi representatives have conducted discussions and mediation efforts continuously with local support from the local government. However, the agreement with this group of people has not been met.


The Company unceasingly attempts to settle this issue immediately so that production operation can resume back to normal and will not disrupt the national oil production target.

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