MedcoEnergi Celebrates its Fortieth Anniversary

We Are 40 Years Young!

From its beginning in 1980 as the first Indonesian drilling services company, MedcoEnergi has evolved into an energy and natural resources company listed on the Indonesia Stock Exchange with three key business segments: Oil & Gas, Power, and Copper Mining. Our commitment to a sustainable future is underpinned by three key pillars: Leadership of & by Our Employees, Environmental & Social. Development, and Local Community Empowerment.

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.

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.

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.

Stock

20/09/2020
MEDC-IDX
(IDR)
430
Market Cap
(Trilion IDR)
8.3
Volume
(lot)
4,035,566

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Monday, 07/09/2020 WIB MedcoEnergi Announces Strategic Alliance with Kansai Electric Power Company

PT Medco Energi Internasional Tbk ("MedcoEnergi") announces the signing of a strategic alliance between PT Medco Power Indonesia ("Medco Power") ...

Wednesday, 26/08/2020 WIB MedcoEnergi Announces First Quarter 2020 Results

MedcoEnergi announces its consolidated financial statements for the period ended 31 March 2020.

Tuesday, 25/08/2020 WIB MedcoEnergi 2020 Public Expose Press Release and Recent Updates

PT Medco Energi Internasional Tbk participated in an online Live 2020 Public Expose in collaboration with the Indonesia Stock Exchange.

Monday, 20/07/2020 WIB MedcoEnergi Announces First Gas of the Meliwis Field Development Project

MedcoEnergi announces that first gas was produced on 13 July 2020 from the Meliwis field in the Madura Offshore PSC, East Java.

Thursday, 25/06/2020 WIB MedcoEnergi Results of Annual General Meeting of Shareholders

MedcoEnergi held its Annual General Meeting Shareholders (AGMS) on June 25, 2020.

Tuesday, 09/06/2020 WIB MedcoEnergi Remains Optimistic To Operate During Pandemic

Entering its 40th year, MedcoEnergi is determined to successfully face the challenges caused by the COVID-19 pandemic.

Thursday, 21/05/2020 WIB MedcoEnergi Announces Its Audited 2019 Results

MedcoEnergi announces its audited 2019 consolidated report for the period ending 31 December 2019

Monday, 20/01/2020 WIB MedcoEnergi Issues US$650 Million Bond

MedcoEnergi announced the successful issue of a 6x oversubscribed seven-year tenor 144A/Reg S US$650 million bond with a 6.375 % coupon.

Monday, 06/01/2020 WIB MedcoEnergi Announces Audited Nine Month 2019 Results

PT Medco Energi Internasional Tbk announces its Audited results for the nine months ending 30 September 2019.

Tuesday, 17/12/2019 WIB MedcoEnergi Announces On-stream of Phase 4B Oil Development Project in Bualuang, Thailand

MedcoEnergi announces first oil from the Phase 4B Development Project on Bualuang concession in Thailand.

MedcoEnergi Announces Strategic Alliance with Kansai Electric Power Company

JAKARTA, 7 September 2020 – PT Medco Energi Internasional Tbk (“MedcoEnergi”) announces the signing of a strategic alliance between its wholly owned-subsidiary, PT Medco Power Indonesia (“Medco Power”) and Kansai Electric Power Company (“Kansai Electric”). 

Under the alliance, Medco Power and Kansai Electric will form a new venture, bringing together Kansai Electric’s global technical expertise with Medco Power’s experience in developing and operating power plants in Indonesia, to provide superior Gas-fired Independent Power Producer (“Gas IPP”) and Operation and Maintenance (“O&M”) services.

Roberto Lorato, the CEO of MedcoEnergi, expressed his satisfaction and said that “this collaboration between Medco Power and Kansai Electric will unlock our potential to grow in the Power sector in Indonesia in line with the Company’s strategy to become a leading Energy sector player”.  

Eka Satria, the President Director of Medco Power mentioned that “the alliance with Kansai Electric will strengthen Medco’s capabilities and allow us to continue developing our Gas IPP and O&M business in Indonesia, through the application of advanced technology and best international practices”.

Established in 2004, Medco Power is one of the leading Independent Power Producers in Indonesia for gas and renewable power.  Medco Power holds a gross capacity over 3.3 GW in combined IPP and O&M business, in 18 locations in Indonesia. Kansai Electric is one of the largest Japanese power companies, with business lines spanning from fuel procurement, power generation, sales and services. Kansai Electric has presence in 13 countries across Asia, Europe and USA with a total generation capacity of 33.5 GW out of which, 2.8 GW are outside of Japan.

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MedcoEnergi Announces First Quarter 2020 Results

Summary Result

  Financial    

  • EBITDA US$181 million.
  • Gross Profit US$120 million.
  • Net Debt to EBITDA1 3.0x.
  • Strong liquidity with cash and cash equivalents above US$775 million.

 Operational

  • Oil and gas production 101 mboepd.
  • Medco Power generated sales of 694 GWh.
  • Oil and gas cash production cost US$7.7 per boe.
  • Capex expenditures US$67 million.

Jakarta, 26 August 2020 – PT Medco Energi Internasional Tbk2 announces its consolidated financial statements for the period ended 31 March 2020 (“1Q 2020”).

Roberto Lorato, CEO, said “This year, 2020, will be remembered for the global spread of Covid-19 and the unprecedented collapse of oil prices and energy demand. While commodity prices and capital markets have begun to recover Medco has responded quickly with protocols to ensure the well-being of our staff and over US$200 million of expenditure deferrals and reductions to preserve cash and support our balance sheet. Despite reducing our capital program, I am pleased to see successful exploration discoveries in both Natuna and Ijen”

Financial Highligths

  • The previously announced Rights Issue is progressing as planned with target completion in early September.
  • Q1 2020 EBITDA was US$181 million, an increase of 13% from US$160 million in Q1 2019 due to the acquisition of Ophir Energy Plc, in June 2019, which more than offset the 15% drop in realized oil prices (Q1 2020 US$51.3/bbl, Q1 2019 US$60.7/bbl). Q1 2020 EBITDA was also flat with Q4 2019 (US$183 million) despite an 18% drop in realized oil prices from Q4 2019 (US$62.9/bbl).
  • Net Income in Q1 2020 was a US$20 million loss, with profits from the Oil and Gas and Power segments, offset by losses in Amman Mineral Nusa Tenggara (AMNT) as the phase 7 development progresses.
  • Liquidity remains strong with US$775 million cash and equivalents at the end of Q1 2020, up from US$544 million in Q1 2019 and US$595 million at year-end 2019.
  • The Company has hedged 7.5% of 2020 production into 2021 at an average price of US$48/bbl and US$42/bbl to provide a further buffer against the continued volatile price environment.
  • Capital expenditures in Q1 2020 were US$67 million, US$51 million in Oil & Gas and US$16 million in Power, down from the US$130 million in Q4 2019 following the early completion in December 2019 of the Phase 4B Bualuang development in Thailand and deferrals and reductions in the 2020 capital program.
  • Net Debt to EBITDA1 at end Q1 2020 was 3.0x, with net debt of US$1,961 million down from the US$2,038 million at Q4 2019. In August 2020 the Company exercised the call option on its US$400 million 144A/Reg S Senior Notes due in 2022, and fully repaid the remaining outstanding debt after the successful tender offer earlier in March. This has allowed earlier deleveraging and reduced future Financing Charges.
  • In June 2020 the Company signed Agreements with SKK Migas on several Indonesian PSCs to keep the Company’s gas revenue unchanged while reducing consumer gas prices in line with Ministerial Decrees No.89K/2020 and No.91K/2020.

 Operational Highlights

  • Oil and gas production in Q1 2020 was 101 mboepd, up 10% from Q1 2019, but down 5% from Q4 2019 due to the extended Q1 2020 shutdown in Block A Aceh.
  • Block A Aceh resumed full operations in early March 2020 after the completion of its Central Processing Plant scheduled maintenance program, which was extended in order to address land stability concerns caused by exceptionally high seasonal rainfall.
  • Unit cash costs in Q1 2020 were US$7.7 per boe, in line with full year guidance and flat with Q1 2019.
  • The Meliwis gas development project in the Madura Offshore PSC, East Java was safely placed into service in July 2020. The field is produced through an unmanned platform to supply gas to local industries.
  • The Paus Biru gas field in the Sampang PSC, offshore East Java obtained partner and SKK MIGAS approval to develop a similar unmanned wellhead platform.
  • The 2020 exploration drilling program in South Natuna Sea Block B PSC has been successful following commercial discoveries in both the Bronang-2 and Kaci-2 wells. The wells tested with high-quality dry gas and have opened up a new play with several future opportunities. Two further exploration wells will be drilled in Block B during 2020.
  • Medco Power generated sales of 694 GWh in Q1 2020, an 11% increase year on year mainly due to higher deliveries from the Sarulla Geothermal facility.
  • The recent geothermal exploration in Blawan Ijen, East Java discovered a steam reservoir with the Ijen 6-1 well. Testing to assess commerciality is underway while the rig has moved to drill a further geothermal exploration well Ijen 5-1 and further two exploration wells will be completed prior to Q1 2021.
  • Construction of the Riau CCGPP is 84% complete and the project on track to be placed into service in 2021.
  • Medco Power is also starting civil works for the 26MWp PV facility in Sumbawa and in discussion with PLN to finalize the design of 2x25MWp PV facilities in Bali and securing the land for the project.
  • Phase 7 development in Amman Mineral Nusa Tenggara has begun accessing productive ore with production ramping up from April 2020. In Q1 2020 AMNT produced 45 Mlbs of copper and 16 Koz of gold.
  • MedcoEnergi is committed to maintaining workplace safety, business continuity and complying with Covid-19 best practice health and safety protocols. The Company has also supported the communities in which it operates in their fight against Covid-19 by donating medical & testing equipment, personal PP&E, sterilization and sanitation equipment to hospitals, community health centers and health clinics. MedcoEnergi has also supported communities by conducting educational campaigns focusing on personal hygiene, use of facemasks and social distancing.

2020 Full Year Guidance 

With US$200 million of expenditure reductions, guidance for 2020 is as follows:

  • Oil & Gas production of 100 – 105 mboepd
  • Oil & gas unit cash costs below US$10/boe
  • Total capital expenditures below US$240million
  • Power sales of 2,600 GWh

               


Hilmi Panigoro, President Director, said “The world and our industry continue to adapt to these extraordinarily challenging times caused by the coronavirus pandemic and low oil price environment. Medco will continue to focus on safeguarding the well-being of our people and minimizing the impact to our business as we continue to deliver on our commitments to stakeholders”.



1Excluding PT Medco Power Indonesia (“MPI” or “Medco Power”)
2PT Medco Energi Internasional Tbk (“MedcoEnergi” or “Company”)

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MedcoEnergi 2020 Public Expose Press Release and Recent Updates

Jakarta, 25 August 2020 - PT Medco Energi Internasional Tbk participated in an online Live 2020 Public Expose in collaboration with the Indonesia Stock Exchange. The Company outlined its actions to prioritize the health & safety of its workforce and the communities in which it operates and also to minimize business disruption during the COVID-19 pandemic.

In the Expose, the Company reaffirmed its 2020 full year guidance of Oil & Gas production 100 – 105 MBOEPD, unit cash cost below US$10/BOE and total capital expenditures below US$240 million.

The Company also discussed recent performance, including:

  • The successful exploration drilling program in South Natuna Sea Block B PSC following the Bronang-2 and Kaci-2 wells. The wells tested with high-quality dry gas and have opened up a new play for future opportunities. Two further exploration wells will be drilled in Block B during 2020.
  • Paus Biru gas field in the Sampang PSC, offshore East Java has obtained approval from partners and SKK MIGAS to develop an unmanned wellhead platform with a single horizontal development well.
  • Meliwis field gas development project in the Madura Offshore PSC, East Java was safely placed into service, first gas was produced on 13 July 2020. The field is developed through an unmanned platform and an 11 km subsea pipeline to the Maleo Platform to supply up to 20 MMCFD to domestic industries in East Java.
  • Geothermal exploration well in Blawan Ijen, East Java has discovered a steam reservoir. Testing to assess commerciality is underway while the rig has moved to drill a further geothermal exploration well on Ijen.
  • Accessing productive ore from Amman Mineral Nusa Tenggara Phase 7, with production ramping up starting April 2020.
  • The exercise of its Call option in August 2020 to repay the remainder of its 5NC3 S144A US$ Bond, originally due in 2022. The exercise of the Call option follows the Tender Offer in March 2020 for these bonds. This process allows MedcoEnergi to deleverage earlier.

Ronald Gunawan, MedcoEnergi’s Chief Operating Officer said, “We are very pleased with the successful results from our exploration drilling in Block B and Ijen, which will open new opportunities in two of our three key business segments. The Company continued investment during this difficult time whilst maintaining strict attention to the health and safety of employees and contractors.”

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MedcoEnergi Announces First Gas of the Meliwis Field Development Project

Jakarta, 20 July 2020, PT Medco Energi Internasional Tbk (“MedcoEnergi”) announces that first gas was produced on 13 July 2020 from the Meliwis field in the Madura Offshore PSC, East Java.

The Meliwis field was discovered in 2016 when gas was found in the Mundu formation. The field is developed through an unmanned platform and an 11 km subsea pipeline to the Maleo Platform to supply up to 20 MMCFD to domestic industries in East Java.

Roberto Lorato, MedcoEnergi’s CEO said, “I am very pleased that notwithstanding the logistical and operational challenges posed by the Covid-19 pandemic, MedcoEnergi completed the Meliwis Development safely, and within 4 years of the fields discovery. This is a testimony of MedcoEnergi’s execution capabilities and of our continued commitment towards all of our stakeholders”

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MedcoEnergi Results of Annual General Meeting of Shareholders

Jakarta, 25 June 2020 – PT Medco Energi Internasional Tbk ("MedcoEnergi" or the "Company") held its Annual General Meeting Shareholders (AGMS) on June 25, 2020.


The Shareholders approved the Company’s plan to issue a maximum of 7,500,000,000 (seven billion five hundred million) new shares associated with a Pre-Emptive Rights Issue planned for third quarter of 2020. The Shareholders also approved the customary agenda items to appoint Auditors for the year 2020, approve the Annual Report and Audited Financial Statements for the year ended December 31, 2019 and approve the remuneration for the Board of Commissioners and Board of Directors for the year 2020.


Hilmi Panigoro, President Director of MedcoEnergi said, "We delivered solid results in 2019 and the Ophir acquisition was immediately accretive to our financial performance. In 2020, our 40th anniversary, the world and our industry are facing extraordinarily challenging times because of the coronavirus pandemic and the low oil price environment. Our focus is of course on safeguarding the well-being of our people, while also minimizing the impact to our business. We will remain vigilant and prepare for any eventuality in order to continue to deliver commitments to our stakeholders”.

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MedcoEnergi Remains Optimistic To Operate During Pandemic

Jakarta, 9 June 2020 - Entering its 40th year, MedcoEnergi is determined to successfully face the challenges caused by the COVID-19 pandemic. The Company continues to prosper by focusing on its three core business segments in Oil & Gas, Power, and copper and gold Mining. Through the acquisition of Ophir Energy plc in 2019, MedcoEnergi is currently recognized as a leading natural resources company in Southeast Asia with oil and gas production above 100,000 boe per day.

The Company is committed to maintaining workplace safety, business continuity and complying with the Government’s COVID-19 health and safety protocols. The Company has supported the communities in which it operates in their fight against COVID-19 by donating billions of rupiah from both Company funds and employee contributions which have been distributed by the Medco Foundation. Medical supplies and other essentials have been distributed as well as laboratory facilities at Dharmais Cancer Hospital.  This facility was built to support the government and the community to accelerate the results of COVID-19 test.

MedcoEnergi's President Director Hilmi Panigoro stated, "We are facing challenging times. The rapid decline in demand for energy in the face of increasing oil production is a challenge for the industry. But, with determination and experience, and our commitment to social and environmental responsibility, MedcoEnergi will support the government to maintain energy supplies while continuing to prosper as it has done during the first 40 years of its journey".

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MedcoEnergi Announces Its Audited 2019 Results

Summary Result

  Financial    

  • Consolidated EBITDA US$660 million, pro forma Ophir US$802 million.
  • Consolidated Gross Profit US$592 million, pro forma Ophir US$667 million.
  • Net Debt to EBITDA1 3.4x, pro forma1 Ophir 2.8x.
  • Strong liquidity with cash and cash equivalents US$596 million.

 Operational

  • Oil and gas production 103 mboepd, pro forma Ophir 115 mboepd.
  • Medco Power generated sales of 2,600 GWh.
  • Oil and gas cash production cost US$9.3 per boe

Jakarta, 20 May 2020 – PT Medco Energi Internasional Tbk2 announces its audited consolidated financial statements for the year ended 31 December 2019 (“2019”).

Roberto Lorato, CEO, said “Last year was dominated by the successful acquisition of Ophir Energy Plc.  This year, 2020, will be remembered for the global spread of Covid-19 and the unprecedented collapse in oil prices.   MedcoEnergi has responded quickly to these new challenges with protocols to ensure the well-being of our staff, and over US$200 million of expenditure deferrals and reductions to preserve cash and support our balance sheet.”

Financial Highligths

  • A new Rights Issue will be proposed at the General Shareholders Meeting in June. Further information will be announced separately.
  • EBITDA US$660 million, gross profit US$592 million with Pro forma Ophir EBITDA was US$802 million.
  • The immediately accretive Ophir acquisition produced seven months EBITDA US$131 million, after one-time acquisition costs of US$35 million and integration costs of US$11 million. Pro forma the Ophir EBITDA was US$238 million.  Recurring annual synergies from the acquisition will be above US$50 million.
  • Net Income was a US$27 million loss (2018 US$51 million loss), as a result of profits from the Oil and Gas and Power segments, which were offset by larger losses in Amman Mineral Nusa Tenggara (AMNT) US$49 million.
  • Capital expenditures were US$313 million, pro forma USS$356million, in line with guidance.
  • Completed the sale of several non-core assets, including Tunisia, Mexico Block 5, monetized the AMNT shareholder loan and further diluted our interest in 2019 and 2020.
  • Liquidity remains strong with cash and equivalents of US$596 million, with rupiah bond maturities in 2020 and 2021 secured in escrow.
  • Credit ratings were recently reaffirmed at B+ from Fitch, B+ from Standard & Poor, B1 from Moody’s and A+ from Pefindo.
  • Net Debt to EBITDA1 was 3.4x, pro forma 2.8x and below the Net Debt to EBITDA1 target of 3.0x.  Gross Debt1 was US$2.5 billion.

 Operational Highlights

  • Oil and gas production 103 mboepd, 115 mboepd Ophir pro forma.
  • Unit cash costs of US$9.3 per boe, lower than our guidance.
  • Completed the new developments in Bualuang, Thailand and Temelat, South Sumatra and the sub-sea development in Buntal-5, South Natuna Sea.  Progress on the Meliwis gas development, East Java has reached 90% of completion as of May 2020 and first gas is on track for midyear.
  • Completion of the successful Bronang-2 exploration well in Block B, South Natuna.
  • Medco Power generated sales of 2,600 GWh, a 4% decline year on year due to unscheduled maintenance in Sarulla Geothermal operations, North Sumatra.
  • Construction of the Riau CCPP is 76% completed and the project is on track for service in 2021.
  • Medco Power signed two new Operation & Maintenance contracts with PLN in Sulut-1, North Sulawesi and Timor-1, East Nusa Tenggara. 
  • Medco Power also won a tender to construct and operate 2x25MWp Solar PV facilities in Bali and construction has begun on the 26MWp PV facility in Sumbawa.

 

2020 Full Year Guidance 

   With US$200 million of expenditure reductions, guidance for 2020 is as follows:

  • Oil & Gas production of 100 – 105 mboepd.
  • Oil & gas unit cash costs below US$10/boe.
  • Total capital expenditures below US$240million.
  • Power sales of 2,600 GWh.

               

             

Hilmi Panigoro, President Director, said “I am proud to say that, in this our 40th anniversary, the Company has enhanced its strength following the completion of the Block A, Aceh development and the acquisition of Ophir Energy, placing us as a leading Southeast Asian energy and natural resources company. The world is now facing extraordinarily challenging times, and Medco will do what it has always done, adapt to the changing environment and continue to produce safe and affordable energy for the countries in which we operate."



1Excluding PT Medco Power Indonesia (“MPI” or “Medco Power”)
2PT Medco Energi Internasional Tbk (“MedcoEnergi” or “Company”)

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MedcoEnergi Issues US$650 Million Bond

Jakarta, 20 January 2020 – PT Medco Energi Internasional Tbk ("MedcoEnergi" or the "Company") is pleased to announce the successful issue of a six times oversubscribed seven-year tenor 144A/Reg S US$650 million bond with a 6.375 % coupon.

The Company received rating upgrades from B to B+ (Stable) from S&P Ratings and from a B2 to B1 (Stable) from Moody’s, while Fitch affirmed their B+ (Stable) rating. The upgrades reflect sustained improvement in the Company’s performance through improved earnings visibility, increased scale and geographic diversification following the successful acquisition and integration of Ophir Energy plc. The Company also received an MSCI ESG Rating of BB, upgraded from B following the publication of its recent Sustainability Report reflecting continued improvement to achieve its long term sustainability goals.

The Company will use the net proceeds from the recent bond to exercise its right to redeem a USD Bond maturing in 2022 and to repay IDR bonds maturing in 2021. (***)

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MedcoEnergi Announces Audited Nine Month 2019 Results

MedcoEnergi Announces Audited Nine Month 2019 Results

Summary Result

  Financial    

  • Consolidated Gross Profit US$440 million, pro forma Ophir.
  • Consolidated EBITDA US$477 million, pro forma Ophir US$605 million US$472 million. 
  • Annualized Net Debt to EBITDA1 3.9x, pro forma1 Ophir 3.0x 
  • Strong liquidity with cash and cash equivalents of US$575 million.

 Operational

  • Oil and gas production 102 mboepd, pro forma Ophir 117 mboepd.
  • Medco Power generated sales of 1,870 GWh.
  • Oil and gas cash production cost US$9.5 per boe

Jakarta, 6 January 2020, PT Medco Energi Internasional Tbk2 announces its Audited results for the nine months ending 30 September 2019. 

Roberto Lorato, CEO said, “We continue to deliver strong operational performance whilst upgrading our portfolio through selective acquisitions and divestments. The integration of Ophir operations has gone well. The US$50 million synergies we have identified, together with the seamless development of Bualuang, Thailand puts us in a great place for 2020.” 

 Financial Highlights          

  • Completed the purchase and delisting of Ophir Energy plc.  Ophir results consolidated (for the four months) from 1 June 2019.  Pro forma numbers assume combined performance from 1 January 2019.   
  • The Ophir acquisition has been immediately accretive with four months US$65 million EBITDA since 1 June, and one-time acquisition costs of US$35 million and we will realize recurring synergies of over US$50 million per annum from 2020 onwards.
  • Gross Profit US$440 million, EBITDA US$477 million with a 47% margin after the transaction costs.  Pro forma Ophir EBITDA was US$605 million.
  • Completed the sale of oil and gas assets in the USA, Tunisia and Block 5 in Mexico, sold 35% of our interest in the Rimau and South Sumatra Indonesian PSCs and exited deep-water exploration assets in Bangladesh, Vietnam, Equatorial Guinea, Aru and West Papua.  In addition sold a 51% interest in AMG (The Energy building) and diluted our interest in Amman Mineral Nusa Tenggara (AMNT) and Ijen geothermal, East Java.
  • We also acquired 100% of North Sokang PSC in East Natuna where we will drill in 2020, a further 7% in Oman KSF and 11.4% of Medco Power to gain full control.  
  • Liquidity remains strong with cash and equivalents US$575 million and pro forma capex of US$204 million.
  • Net debt to EBITDA1 3.9x, pro forma1 3.0x after debt repayment1 of US$409 million and on track to achieve the target of Net Debt to EBITDA1 of 3.0x and gross debt1 below US$2.6 billion

 

Operational Highlights

  • Oil and gas production 102 mboepd, 117 mboepd pro forma Ophir with unit cash costs of US$9.5 per boe.
  • Bualuang, Thailand, Phase 4B development produced first oil with initial production rates above expectation, at 12,900 bopd.  Upon the completion of the drilling program in mid-2020 production is expected to reach over 14,000 bopd.
  • Progress on Meliwis, the East Java gas development has reached 57% per plan, with off-shore installation completed and first gas on track for mid 2020.
  • Medco Power generated sales of 1,870 GWh, with progress on the Riau Combined Cycle Gas Power Plant at 46%, and on track for an in-service date in Q4 2021.
  • AMNT production from stockpile was 96 Mlbs of copper and 42 Koz of gold. Progress on the fully funded Phase 7 development continues with first production expected mid 2020.

         

2019 Full Year Guidance 

The company’s operational guidance for 2019 is as follows:

  • Production 100 mboepd, Ophir pro forma 110 mboepd 
  • Oil and gas unit cash costs will be maintained below US$10 per boe.
  • Capex Ophir pro forma below US$350 million.
  • Net Debt to EBITDA1 target of 3.0x1or below.

Hilmi Panigoro, President Director, said, “I am pleased to see continued strong operational and financial results. The acquisition of Ophir assets has secured our position as a leading Southeast Asia energy and natural resources company, at a time when the commodities price environment looks to be turning in our favor”.

 



1Excluding PT Medco Power Indonesia (“MPI” or “Medco Power”)
2PT Medco Energi Internasional Tbk (“MedcoEnergi” or “Company”)

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MedcoEnergi Announces On-stream of Phase 4B Oil Development Project in Bualuang, Thailand

Jakarta, 17 December 2019 – PT Medco Energi Internasional Tbk (MedcoEnergi) announces first oil from the Phase 4B Development Project on the 100% owned Bualuang concession in Thailand.

The project is located in the Gulf of Thailand and comprises a new bridge-linked wellhead platform structure along with the retrofitting of extension structures to the existing platforms. Initial production rates at 12,900 bopd have exceeded expectations and upon the completion of the drilling program in mid-2020 field production is expected to peak at over 14,000 bopd.

Roberto Lorato, CEO said “I am pleased to report that the Phase 4B Development Project has reached first oil, with drilling performance 70 days faster than planned. Especially pleasing is that the project was safely handed over from Ophir in May without safety incident or disruption. Our integration of Ophir Energy plc is proceeding well, with total recurring synergies of around US$50 million per year already identified.”

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