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

28/06/2017
MEDC-IDX
(IDR)
2,290
Market Cap
(Trilion IDR)
7.6
Volume
(lot)
160,197

Whistleblower

Ensuring MedcoEnergi is a safe, fair and honest place to work.
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.

Friday, 30/12/2016 WIB Signing of Syndicated Project Financing Agreement for Umbulan Water Supply System

Today PT Medco Energi Internasional Tbk. through its subsidiary PT Medco Gas Indonesia (“MedcoEnergi”) joined in a consortium with PT B ...

Thursday, 17/11/2016 WIB MedcoEnergi Completes Acquisition of ConocoPhillips’ Interest in South Natuna Sea Block B

PT Medco Energi Internasional Tbk (“MedcoEnergi” or the “Company”) is pleased to announce that it has now completed the a ...

Wednesday, 09/11/2016 WIB MedcoEnergi Further Increases Interest in Aceh Block A PSC

PT Medco Energi Internasional Tbk through its subsidiary PT Medco E&P Malaka (“MedcoEnergi”) is pleased to announce it has reached an agreement

Wednesday, 02/11/2016 WIB MedcoEnergi Announces Timely Completion of NNT Transaction

PT Medco Energi Internasional Tbk is pleased to announce a successful completion of the Company’s purchase of a 50% stake in PT Amman Mineral Internasional, whi ...

Monday, 24/10/2016 WIB MedcoEnergi Announces its 9M16 Financial Results

Today, PT Medco Energi Internasional Tbk announced its un-audited consolidated financial statements for the period ending 30 September 2016 (“9M16”).

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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Signing of Syndicated Project Financing Agreement for Umbulan Water Supply System

Jakarta, 3 January 2017 – Today PT Medco Energi Internasional Tbk. through its subsidiary PT Medco Gas Indonesia (“MedcoEnergi”) joined in a consortium with PT Bangun Cipta Kontraktor via PT Meta Adhya Tirta Umbulan (“META”) to appoint PT Indonesia Infrastructure Finance (“IIF”) as the mandated lead arranger (“MLAB”) for the syndicated financing of the Umbulan Water Supply System (“WSS”) Project.

The Umbulan WSS Project will be commissioned in mid-2019 and is a National Strategic Project to provide drinking water for 1.3 million people via a 4,000 liters per second, 93 km transmission pipeline from Umbulan springs to five Regional Water Companies in the Province of East Java.

The project requires an investment of around Rp 2.1 trillion through the Government and Enterprises Cooperation Scheme and is the 4th such project to be financed in Indonesia. META as the winning bidder will receive funding through a central government Viability Gap Fund which has also obtained a guarantee from PT Penjaminan Infrastruktur Indonesia. IIF and PT Sarana Multi Infrastruktur have also signed the syndicated financing for the Umbulan WSS project on 30 December 2016.

Hilmi Panigoro, President Director of MedcoEnergi, said, “With the support from the Government of RI, we continue to realize our commitment to develop and improve the utilisation of resources including water resources for the greater community and the economic growth in Indonesia.”

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MedcoEnergi Completes Acquisition of ConocoPhillips’ Interest in South Natuna Sea Block B

Jakarta, November 17, 2016 – PT Medco Energi Internasional Tbk (“MedcoEnergi” or the “Company”) is pleased to announce that it has now completed the acquisition of ConocoPhillips Indonesia Inc. Ltd. (“CIIL”) and ConocoPhillips Singapore Operations Pte. Ltd. (“CSOP”), both subsidiaries of ConocoPhillips (“COP”).

CIIL is the Operator of the South Natuna Sea Block B PSC (“SNSB”) with a 40% working interest and is also the Operator of the West Natuna Transportation System (“WNTS”). CSOP operates the Onshore Receiving Facility (“ORF”) in Singapore. The WNTS infrastructure together with the Malaysian pipeline is, and will continue to be the focal point for the commercialization of existing discoveries and ongoing exploration activity within the Natuna area.

Roberto Lorato, CEO of MedcoEnergi said “Our immediate priority is to maintain safe operations and business continuity. Hence, our commitment to maintain the current organization and to continue with the planned drilling program in 2017 and beyond.  We will also maintain SNSB’s world-class operating scale and infrastructure together with its best-in-class health, safety, environmental and social performance standards”.

Hilmi Panigoro, President Director of MedcoEnergi, remarked that, “Following our recent completion of the purchase of the PT Newmont Nusa Tenggara, this transaction is the second major milestone for the Company this year. With the addition of SNSB, not only will MedcoEnergi gain access to a world-class integrated offshore oil and gas operation, but also strengthen its position as Indonesia’s premier independent energy and natural resources Company.” 

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MedcoEnergi Further Increases Interest in Aceh Block A PSC

Jakarta, 9 November 2016 – PT Medco Energi Internasional Tbk through its subsidiary PT Medco E&P Malaka (“MedcoEnergi”) is pleased to announce it has reached an agreement to acquire a further 26.6666% interest in the Block A Aceh Production Sharing Contract (“Block A”) from KrisEnergy. Completion of the transaction is conditional on the approval of the Government of Indonesia and the Government of Aceh. Upon completion of this transaction MedcoEnergi will hold an 85% working interest in Block A.

MedcoEnergi also announces the completion of its acquisition of the Japex 16.6667% interest in Block A following the earlier announcement on May 2, 2016.

Roberto Lorato, CEO of MedcoEnergi remarked “This further acquisition increasing our interest in Block A aligns both our commitments for shareholder value creation and national development in support of the Government’s plan to develop Aceh infrastructure. The first stage development of the large resources on the block is within budget and on track to deliver first gas in Q1 2018.”

Facts

The current participating interests in the block are MedcoEnergi 58.3334% (operator) and KrisEnergy 41.6666%.

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MedcoEnergi Announces Timely Completion of NNT Transaction

Jakarta, November 2, 2016 – PT Medco Energi Internasional Tbk (“MedcoEnergi” or the “Company”) is pleased to announce the successful completion of the Company’s purchase of a 50% stake in PT Amman Mineral Internasional, which controls 82.2% of PT Newmont Nusa Tenggara (“NNT”). The transaction which was first announced on June 30, 2016 has received all related regulatory approvals as well as MedcoEnergi shareholder approval.

PT Newmont Nusa Tenggara operates the world class Batu Hijau copper and gold mine on the Island of Sumbawa, Indonesia and has access to a several exploration prospects as well as the large undeveloped Elang discovery within its Contract of Work. In 2015, production from Batu Hijau, reached 240 million lbs of copper and 0.3 million oz of gold.

Hilmi Panigoro, President Director of MedcoEnergi, said, “This acquisition is immediately accretive and marks a monumental milestone for MedcoEnergi and our stakeholders including the Indonesian government. We always take pride in our commitment and achievement in maintaining world-class standards of safety, environmental stewardship and social responsibility, as well as high quality workforce. Given NNT’s world-scale operations, the Company is underway in its transformation from being world-class to world-scale.”

Similarly, Chairman of MedcoEnergi, Muhammad Lutfi, emphasized how the transaction further proves and strengthens MedcoEnergi’s vision, mission and values. The Company aims to be one of the leading contributors to national economic development, a champion in global competition, a pioneer in promoting progress and innovation, and a leader in ensuring sustainability in everything the Company does.

MedcoEnergi together with AP Investment joined forces last year for the transaction and received positive support from the three largest state-owned banks. AP Investment is led by Agus Projosasmito, former President Director of Danareksa Securities.

“My deepest gratitude goes to the Government of RI who could see the immediate strategic value of the transaction and today is further evidence of their support for MedcoEnergi, to be a global pioneer. The next path for the Company is to partake in ensuring that resource-rich Indonesia achieves higher quality, improved efficiency, and better utilized resources as its competitive edge. Access to abundant and affordable energy resources, mineral resources, or human resources of highest quality is the birthright of every Indonesian, and that is why MedcoEnergi exists” remarked Arifin Panigoro, Founder of MedcoEnergi.

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MedcoEnergi Announces its 9M16 Financial Results

SUMMARY OF 9M16 PERFORMANCE

Operational

  • Average production of 63.9 MBOEPD
    • Oil Production – 29.8 MBOPD
    • Gas Production – 199.2 MMSCFD  
  • Increased production volume by 21.1% above 9M15
  • Obtained shareholders’ approval for the acquisition of 50% shares in PT Amman Mineral Investama, which will indirectly control 82.2% interest in PT Newmont Nusa Tenggara
  • Signed a Share Sale and Purchase Agreement to acquire a 40% Operating interest in the South Natuna Sea Block B PSC

 

Financial

  • Revenue US$416.9 million, Gross Profit US$159.5 million and Operating profit US$86.5 million
  • EBITDA US$181.5 million, EBITDA margin increased to 43.5% from 39.5% in 9M15
  • Oil and Gas operating cash costs reduced by 28% compared to 9M15
  • Net profit of US$22.3 million

 

 

Jakarta, 24 October 2016 – Today, PT Medco Energi Internasional Tbk announced its un-audited consolidated financial statements for the period ending 30 September 2016 (“9M16”).

Roberto Lorato, the CEO of MedcoEnergi stated that “Our production continues to be strong and we are on track to meet our increased targets for the year. We have focused upon our cost efficiency efforts and will continue to do so. The Company’s acquisitions are also on schedule and our target remains to complete both before the end of the year.”

9M16 Operational Key Points

  • Production volume was 21.1% higher than in 9M15 at 63.9 mboepd.The increase in production volume was mainly attributed to the additional contribution of Senoro-Toili Gas field.
  • MedcoEnergi’s average realized oil price for the period was US$ 39.5/bbl or 26.1% lower compared to 9M15, whilst average realized gas price was US$ 4.2/mmbtu or 23.4% lower from 9M15.
  • The Company lowered unit production cash costs by 28% to US$ 7.9/boe, well within the Company’s 2016 full year target of below US$ 10/boe.
  • Awarded Block A Aceh EPC contract to JEC to construct the gas plant facilities. Construction is on track and under budget with first gas still expected in Q1 2018

9M16 Financial Key Points

  • Total revenue was booked at US$ 416.9 million, gross profit recorded at US$ 159.5 million and operating income increased 6.4% to US$ 86.5 million.
  • MedcoEnergi’s EBITDA (Earnings before Interest, Taxes, Depreciation and Amortization)  increased by 10% to US$ 181.5 million, with an improved EBITDA margin up from 39.5% to 43.5% year on year.
  • MedcoEnergi’s profit attributable to owners of the parent company increased significantly from net loss of US$ 51.1 million in 9M15 to net profit of US$ 22.3 million in 9M16.
  • Obtained shareholder approval for the acquisition of a 50% stake in PT Amman Mineral Investama which will indirectly control 82.2% interest in PT Newmont Nusa Tenggara. Closing is expected in October 2016.
  • Signed a Sale and Purchase Agreement to acquire Japex’s 16.67% interest in the Block A Aceh PSC. Closing is expected in October 2016.
  • Signed a Share Sale and Purchase Agreement with ConocoPhillips to acquire a 40% participating interest (and Operatorship) in the South Natuna Sea Block B PSC, along with West Natuna Transportation System gas transportation system. Closing is expected in November 2016.
  • Signed a Share Sale and Purchase Agreement to divest a 100% participating interest in Bawean PSC. Closing is expected in Q4 2016.
  • Obtained shareholder approval for a rights issue with a target to raise an initial US$150 million.
  • Raised a total of IDR 2.5 trillion through its Shelf Registered IDR bond program. The recent issuance was heavily oversubscribed and the Company will issue another phase of this program in November 2016.

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