Bringing Back Indonesia’s Strategic Assets from Newmont

Amman Mineral Nusa Tenggara, West Sumbawa, Indonesia

The acquisition of this asset marks a monumental milestone for MedcoEnergi and our stakeholders including the Indonesian government. We commit to maintain the world-class standards of safety, environmental stewardship and social responsibility, as well as high quality workforce.

World-class offshore operations

South Natuna Sea Block B, Riau, Indonesia

An offshore PSC located in the South Natuna Sea with a large hydrocarbon base and best in class Health, Safety, and Environmental records. With the asset integration into MedcoEnergi’s portfolio through acquisition, it will enhance the Company’s capabilities and scale as a world class offshore operating Oil and Gas Company.

MedcoEnergi Achieved Important Milestones

Senoro Upstream and Downstream LNG Project

MedcoEnergi as a Private National Oil & Gas Company and its partners has succeeded in monetizing the Senoro gas field which was previously considered as stranded gas, by supplying gas to the Donggi Senoro LNG plant among others. The inauguration of both projects was in conjunction with the release of first cargo of LNG shipment by the President of the Republic of Indonesia, Mr. Joko Widodo.

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

25/11/2017
MEDC-IDX
(IDR)
925
Market Cap
(Trilion IDR)
12.3
Volume
(lot)
269,061

Whistleblower

Ensuring MedcoEnergi is a safe, fair and honest place to work.
Friday, 03/11/2017 WIB MedcoEnergi Announces Fully Underwritten Right Issue

MedcoEnergi announced that it has filed the prospectus for its planned Rights Issue to the OJK after the successful EGMS on 2 Nov 2017

Friday, 06/10/2017 WIB MedcoEnergi Strengthen Ownership in Power Business

PT Medco Energi Internasional Tbk announces that it has acquired a 77.68% interest in PT. Saratoga Power from Saratoga and other shareholders.

Monday, 02/10/2017 WIB MedcoEnergi Announces Its Audited 1H 2017 Results

PT Medco Energi Internasional Tbk announced its audited consolidated financial statements for the period ending 30 June 2017.

Monday, 14/08/2017 WIB MedcoEnergi Issued 5NC3 Bonds of US$ 300 Million

MedcoEnergi is pleased to announce that it has issued a 5NC3 S144A Reg S bond for US$ 300 million with a final coupon of 8.5%.

Friday, 14/07/2017 WIB MedcoEnergi Announces its Audited 1Q 2017 Results

PT Medco Energi Internasional Tbk announced its audited consolidated financial statements for the period ending 31 March 2017.

Monday, 19/06/2017 WIB MedcoEnergi AGMS & EGMS Results

PT Medco Energi Internasional Tbk held on Friday 16 June 2017 its Annual General Meeting and Extraordinary Meeting of Shareholders.

Tuesday, 23/05/2017 WIB MedcoEnergi Awarded USD 24 Million Arbitration Award

PT. Medco Energi Internasional Tbk announced that an UNCITRAL Arbitration Tribunal has awarded its Singapore based wholly-owned subsidiary Medco Strait Services Pte Ltd ...

Thursday, 04/05/2017 WIB MedcoEnergi Plans for Stock Split

Jakarta, 4 May 2017 – PT Medco Energi Internasional Tbk, (“Company”) has filed an agenda with the Financial Services Authority (OJK) for the forthcoming

Monday, 03/04/2017 WIB MedcoEnergi 2016 Annual Results

Today, MedcoEnergi announced its audited consolidated financial statements for the period ending 31 December 2016

Monday, 27/03/2017 WIB MedcoEnergi Acquired INPEX’s Interest in South Natuna Sea Block B

PT Medco Daya Sentosa a subsidiary of Medco Energi Internasional Tbk has signed a Sale and Purchase Agreement to acquire INPEX Natuna Ltd.

MedcoEnergi Announces Fully Underwritten Right Issue

JAKARTA, November 3rd 2017 – PT Medco Energi Internasional Tbk (“MedcoEnergi” or the “Company”) is pleased to announce that following a successful Extraordinary General Shareholders Meeting on November 2nd 2017 the Company has filed the prospectus for its planned Rights Issue to the Otoritas Jasa Keuangan.

Subject to regulatory approvals, the Company will offer existing shareholders preemptive rights to subscribe for one new share for every three existing shares held, with each new share receiving a detachable warrant to purchase additional share in the future (“the Offering”). A total of 4.45billion shares will be issued immediately with up to a further 4.45billion shares issued if and when subscribing shareholders subsequently exercise their warrants. All new shares will have the same rights and characteristics as existing shares.

The initial rights issue which is fully underwritten will raise up to IDR2,670billion and will be completed within December 2017 with the proceeds being used for debt payment. The proceeds from the exercise of subsequent warrants will be used for working capital, payment of Company’s liabilities and general corporate purposes.

The subscription price of the new shares will be priced between Rp450 and Rp600 per share. Subscribing shareholders can exercise the warrants between July 2018 and December 2020, with the exercise price for each warrant ranging between Rp500 and Rp850.

Further details of the Offering are available in the Company’s prospectus filing. The Company will also conduct roadshows over the coming weeks to describe the Offering.

Hilmi Panigoro, the President Director of MedcoEnergi, said that “The Rights Issue is a significant milestone for the Company and will improve the Company’s capital structure. The Offering will immediately reward shareholders and also allow them the opportunity to share in the Company’s future success.”

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MedcoEnergi Strengthen Ownership in Power Business

JAKARTA, 06 October 2017 – PT Medco Energi Internasional Tbk (“MedcoEnergi” or the “Company”) announces that it has acquired a 77.68% interest in PT. Saratoga Power from Saratoga and other shareholders. With this transaction, the Company has increased its effective interest in PT. Medco Power Indonesia ("MPI”) from 49% to 88.62%. The remaining 11.38% effective share in MPI held by the International Finance Corporation (“IFC”) is unchanged.


Established in 2004, MPI is a leading mid-sized Independent Power Producer (IPP) in Indonesia with its primary focus on power from natural gas and geothermal sources. MPI currently operates over 520MW of gross installed capacity following the commercial operation of the Cibalapulang 1 mini-hydro facility in September 2017, and the expected commercial operation of the Sarulla Unit 2 geothermal plant in October 2017, one month ahead of schedule. MPI gross operated capacity will further increase when Sarulla Unit 3 (110MW) reaches commercial operation in Q2 2018, and Riau CCPP (275MW) in 2021.


MPI Operation & Maintenance (O&M) business has also expanded and now operates over 2,000MW of third-party power plants. This expansion is driven by two new O&M contracts signed in late 2016 where MPI now operates the Sarulla Geothermal units and PLN gas-turbine units in eight locations across Indonesia.


Hilmi Panigoro, the President Director of MedcoEnergi, said that “this acquisition allows the Company to regain majority control of MPI and to strengthen our position in the power generation sector, which is expected to continue growing at 9% per annum over the next ten years. Our increased control over MPI is consistent with the Company’s strategy to grow in three main sectors; oil and gas, mining and power, and unlocks greater potential for synergies with our upstream gas business.”

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MedcoEnergi Announces Its Audited 1H 2017 Results

SUMMARY OF 1H 2017 KEY PERFORMANCE

 

Operational

  • Oil and gas production volume increased 40.4% year on year
    • Average production was 89.8 MBOEPD (64.0 MBOEPD in 1H 2016)
    • Oil Production – 35.5 MBOPD (30.2 MBOPD in 1H 2016)
    • Gas Production – 290.6 MMSCFD (197.8 MMSCFD in 1H 2016)
    • Unit costs were $8.2/boe, below the commitment to sustain cash costs sub $10/boe

Financial

  • EBITDA of US$200.3 million (1H 2016 US$123.9 million)
  • Net profit of US$80.7 million (1H 2016 US$11.3 million)
  • Debt reduced by 8.2% from year end 2016
  • Strong liquidity with cash and cash equivalents above US$210 million and over US$150 million of trade receivables.

 

Jakarta, 2nd October 2017 – PT Medco Energi Internasional Tbk (“MedcoEnergi” or “Company”) announced its audited consolidated financial statements for the period ending 30 June 2017 (“1H 2017”).

Roberto Lorato, CEO said that “The Company continues to perform strongly, maintaining both production and cost management this year, we also added and certified 30 million BOE of proved reserves in Block A Aceh for which the gas development is on track to deliver first gas in late Q1 2018, the Central Processing Plant is 85% complete with the first well flow testing right now. The growth and expansion plans of our Power and Mining affiliates will continue with progress accelerating prior to year-end.”

Operational Highlights in 1H 2017

  • Oil and Gas production was of 89.8 MBOEPD in 1H 2017, 40.4% higher than 1H 2016, driven by continued high gas sales from the Senoro field and volumes from the South Natuna Sea Block B field.
  • Medco Power Indonesia (“MPI”) the Company’s power affiliate now operates over 520MW of gross installed capacity in gas, geothermal and mini-hydro power plants following the commercial operation of the Cibalapulang-1 mini-hydro facility and the expected commercial operation of the Sarulla Unit 2 Geothermal Plant in early October, one month ahead of schedule.
  • PT Amman Mineral Nusa Tenggara (“PTAMNT”) the Company’s mining affiliate continues to make good progress on its plans to reduce costs and fund future developments.


Financial Highlights in 1H 2017

  • 1H 2017 revenue was US$403.5 million, 54.3% higher than 1H 2016 with higher sales and increased average realized prices of US$49.3/bbls (+28.8%) for oil and US$5.6/mmbtu (+32.8%) for gas.
  • The Company recorded 1H 2017 gross profit of US$198.2 million and a 49.1% gross margin. Cash costs continue to be a focus area with 1H 2017 gas and oil unit cash costs US$8.2/BOE, well below the Company’s commitment to remain below US$10/BOE until 2020.
  • The Company’s 1H 2017 EBITDA (Earnings before Income, Taxes, Depreciation and Amortization) increased by 61.7% year on year to US$200.3 million, with an improved EBITDA margin of 49.6%.
  • In 1H 2017 the Company booked net profit from operations of US$80.7 million, compared to US$11.3 million in 1H 2016. 1H 2017 results were also negatively impacted by PT AMNT price hedges and dry hole expenses in Bengara, both non-recurring items.
  • Net debt to EBITDA for 1H 2017 is 3.9x, well below the 6.7x in 2016 and the lowest level since 2013.

Hilmi Panigoro, President Director of MedcoEnergi, said that “I am pleased with the Company’s first half 2017 results and Amman Mineral Nusa Tenggara’s plans to reduce costs and develop its substantial copper and gold reserves are also progressing well, also this year we will complete our rights issue which will strengthen our capital structure and provide additional value to shareholders.”

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MedcoEnergi Issued 5NC3 Bonds of US$ 300 Million

JAKARTA, 11 August 2017 – PT Medco Energi Internasional Tbk (“MedcoEnergi” or the “Company”) is pleased to announce that it has issued a 5NC3 S144A Reg S bond for US$ 300 million with a final coupon of 8.5%. MedcoEnergi received a credit rating for both MedcoEnergi and the bond from Moody's for ‘B2’, and ‘B’ from Fitch and Standard & Poors all with ‘stable’ outlook. The proceeds of the bond will be used for refinancing existing indebtedness.

Hilmi Panigoro, the President Director of MedcoEnergi, said that with this successful transaction we are able to extend the average age of our debt maturity and access a new source of funding for our future developments. Moreover, I am particularly pleased with the international markets confidence in the Company’s business, commitment and robust asset portfolio. We look forward to working with the bond holders and expanding our relationship with this new set of investors

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MedcoEnergi Announces its Audited 1Q 2017 Results

SUMMARY OF 1Q 2017 KEY PERFORMANCE

Operational

  • Production volume increased by 41.7%
  • Average production 91.4 MBOEPD (compared to 64.5 MBOEPD in 1Q 2016)
  • Oil Production – 36.7 MBOPD (30.7 MBOPD in 1Q 2016)
  • Gas Production – 292.0 MMSCFD (197.6 MMSCFD in 1Q 2016)
  • Unit costs of $8.07/boe well below the long term commitment to remain under $10/boe

 Financial

  • EBITDA of US$108.2 million (Q1 2016 US$66.2 million)
  • Net profit of US$43.1 million (Q1 2016 US$10.2 million)
  • Debt reduced by 6% from year end 2016
  • Solid liquidity with cash, investments and cash equivalents of over US$ 180 million and $190 million of trade receivables

 

Jakarta, 14th July 2017 – PT Medco Energi Internasional Tbk (“MedcoEnergi” or “Company”) announced its audited consolidated financial statements for the period ending 31 March 2017 (“1Q 2017”).

Operational Highlights in 1Q 2017

  • Production volume of 91.4 MBOEPD 41.7% higher compared to 1Q 2016. The increased production volume was due to continued high gas sales on the Senoro field and a full quarter contribution from the 40% Operatorship in the South Natuna Sea Block B Field which was acquired in Q4 2016.
  • The Company is also pleased to announce the signing of a project finance facility agreement with three international banks to secure full funding for the Block A Aceh development. The project is on track and on budget, and now 48.9% complete with first gas on schedule for Q1 2018.
  • On PT. Amman Mineral Nusa Tenggara (“AMNT”), the Company is pleased to report that the shareholders of MacMahon Holdings Limited (“MAH”), based in Australia and listed on the Australian Stock Exchange, voted to approve the proposed 44.3% acquisition of MAH by AMNT, by far the single largest stake in MAH. In return, MAH will acquire the mobile equipment of AMNT and provide contract mining services for AMNT’s Batu Hijau mine. MAH is a leading provider of diverse and comprehensive package of mining services to blue chip clients in Australia, Indonesia and other parts of the world. It has extensive experience in both surface and underground mining.

Financial Highlights in 1Q 2017

  • 1Q 2017 revenue was US$210.3 million, 60.7% higher compared to 1Q 2016 with average realized prices of US$51.6/bbls (+68.6%) for oil and US$5.5/MMBTU (+33.3%) for gas.
  • The Company recorded a 1Q 2017 gross profit of US$105.1 million with an improved gross margin of 50.0%.
  • The Company’s EBITDA (Earnings before Income, Taxes, Depreciation and Amortization) increased by 63.4% to US$108.2 million year on year, with an improved EBITDA margin of 51.5%.
  • In 1Q 2017 the Company booked net profit from operations of US$43.1 million, compared to US$10.2 million in 1Q 2016 with net income margin of 20.5% up from 7.8% in 1Q 2016.
  • Cash costs continue to be a focus area with 1Q 2017 unit cash costs of US$8.07/BOE compared to US$8.8/BOE during 2016 and below the Company’s commitment to remain below US$10/BOE until 2020.

Roberto Lorato, CEO of Medco Energi, said that “we are now seeing the full impact of last year acquisitions and of our management efforts to boost production whilst containing the operating costs. Our focus remains to continuously optimize our operations and to deliver the complex Block A Aceh gas development on schedule and within budget.

Hilmi Panigoro, President Director MedcoEnergi, said “I am pleased with this strong start of 2017 performance with production, profits and operating margins well above last year. It is also good to see progress on our major projects with the financing for Block A now closed and MacMahon shareholders approval of AMNT proposal. MacMahon specific expertise in mining planning, design and technology will support AMNT’s strategy to improve cost competitiveness of its field investments and operations”.

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MedcoEnergi AGMS & EGMS Results

Jakarta, 19 June 2016 - PT Medco Energi Internasional Tbk ("MedcoEnergi" or the "Company") held on Friday 16 June 2017 its Annual General Meeting and Extraordinary Meeting of Shareholders (AGMS and EGMS).

The AGMS approved the 2016 Annual Report and 2016 Audited Consolidated Financial Statements of the Company, appointed a Registered Public Accounting Firm who will audit the Company’s Financial Statement for the year ended 31 December 2017 and fixed the remuneration of the BOD and the BOC for the period of January – December 2017.

MedcoEnergi released its 2016 Financial Results on March 31st and a copy of the Press Release is available on its website.

At the EGMS, the Shareholders also approved an extension of the implementation period for the Company’s previously approved Rights Issue program in 2016 and Shareholders also approved the 4:1 stock split of the Company’s shares.

The Company will shortly release its 2017 Q1 Audited Financial Results with an accompanying Press Release.

Hilmi Panigoro, President Director of PT Medco Energi Internasional Tbk, said "Last year, 2016 was a transformational year for MedcoEnergi. Two large acquisitions together with hard work and prudent implementation of our operational efficiencies resulted in increased revenue, EBITDA, Net Profit and share prices. We aim to continue to Deliver Value throughout 2017.”

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MedcoEnergi Awarded USD 24 Million Arbitration Award

Jakarta 23 May 2017 – PT. Medco Energi Internasional Tbk (“MedcoEnergi”) announced today that an UNCITRAL Arbitration Tribunal has awarded its Singapore based wholly-owned subsidiary Medco Strait Services Pte Ltd (“MSS”) approximately US$ 24 million pursuant to its claims against Singapore Petroleum Ltd. and Cue Energy Pty Ltd.  

 

Roberto Lorato, CEO of MedcoEnergi commented “We are pleased with the arbitration tribunal award which confirms our position as having acted in good faith and in full adherence to our contractual obligations”.  

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MedcoEnergi Plans for Stock Split

Jakarta, 4 May 2017 – PT Medco Energi Internasional Tbk, (“Company”) has filed an agenda with the Financial Services Authority (OJK) for the forthcoming June 16th 2017 Annual General Meeting of Shareholders. In addition, the Company filed notice that it will also request shareholders to approve a 4 for 1 stock split.

The Company is also finalizing its proposal to the OJK for the rights issue approved by shareholders in the Extraordinary General Meeting in September 2016.

Hilmi Panigoro, President Director of PT Medco Energi Internasional Tbk, said that “This stock split reflects our confidence in the underlying value of our assets and will be followed later this year by a rights issue that will confirm our commitment to return value and reward our shareholders.”

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MedcoEnergi 2016 Annual Results

Jakarta, 3 April 2017 – PT Medco Energi Internasional Tbk, (“MedcoEnergi” or the “Company”) today reported full year net profit of USD 185 Million compared with a 2015 net loss of USD 188 Million.  2016 oil and gas production was 66 MBOEPD (2015 56 MBOEPD) and unit costs $8.8/BOE (2015 $12.3/BOE), full year EBITDA was USD 274 Million (20151 USD 220 Million) with Amman Mineral Nusa Tenggara (AMNT) results equity consolidated.

Hilmi Panigoro, President Director said that “2016 was a transformational year for the Company. Despite continued business uncertainty we pursued a clear strategy to acquire quality producing assets at advantaged prices.  I am confident that our improved operating margins will continue to deliver value and returns to our investors, lenders and other stakeholders. We are proud to be a competitive, financially robust national champion.”

Roberto Lorato, CEO said “In 2016 we exceeded our guidance in all areas. We acquired two large strategic producing assets, pushed forward with execution of the Aceh gas development, achieved a year end production run rate of over 80 MBOEPD, all while adjusting our organization and cost structure and delivering excellent HSE performance. In 2017 we will build upon this and remain disciplined in pursuing our operational and financial goals”.

Operational highlights

2016 operational results are summarized below:

  • Oil and gas production of 66 MBOEPD compared to 56 MBOEPD in 2015.
  • Aceh gas development on budget and on track with work now over 35% complete.  
  • Replaced 232% of hydrocarbon production, technically certified a further 880 BCF (gross) of gas on Senoro and awarded a 10 year extension for the Lematang PSC.
  • AMNT full year production was 477 million lbs of copper and 798 thousand oz gold.
  • Medco Power produced 1.7GW compared to 1.3GW in 2015 and won the tender to construct a 275MW IPP in Riau.
  • Awarded a Gold PROPER Environmental Award for Rimau PSC.

Financial Highlights

2016 financial results are summarized below:

  • Completed the acquisition of a 41.1% indirect interest in AMNT. 
  • Completed the acquisition of a 40% Operating interest in the South Natuna Sea Block B.
  • Consolidated our Block A Aceh interest to 85% by acquiring 16.67% from Japex and 26.67% from KrisEnergy.
  • Completed the acquisition of Lundin’s 25.8% interest in Lematang. 

Other financial results are summarized below:

  • Bargain purchase gains of USD 551 million, partially offset by impairments of USD 311 million mainly due to deferral of developments in geopolitically challenged North Africa.
  • Reduced hydrocarbon cash costs to USD 8.8/BOE compared to USD 12.3/BOE in 2015.
  • Raised IDR 2.8 Trillion through an IDR bond program and USD 55 million through Medium Term Notes.

2017 Guidance

  • Oil and gas production in the range of 75 – 80 MBOED.
  • Unit cash costs will remain below $10/BOE in 2018, and through 2020
  • Drilling on the South Natuna Sea Block to access untapped hydrocarbon reserves
  • The Aceh gas development will continue with drilling in the second quarter.
  • Power generation will be in the range of 2.1 – 2.2GWh.
  • AMNT production will be 300-310 million lbs copper, 400-420 thousand oz gold,
  • AMNT will complete its smelter feasibility study and sanction a new mine plan.

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MedcoEnergi Acquired INPEX’s Interest in South Natuna Sea Block B

Jakarta, March 27, 2017 – PT Medco Daya Sentosa a subsidiary of Medco Energi Internasional Tbk has signed a Sale and Purchase Agreement (“SPA”) to acquire INPEX Natuna Ltd. (“INL”), a wholly owned subsidiary of INPEX Corporation (“INPEX”) which holds 35% non-operating interest in South Natuna Sea Block B PSC (“SNSB”).

MedcoEnergi acquired the 40% Operating interest in the South Natuna Sea Block B PSC in November 2016. Hilmi Panigoro said that the latest acquisition demonstrated continued confidence in the long term future of the asset.

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