1948 - 2024

Raisis Arifin Panigoro

Advisor of MedcoEnergi

It is with heavy heart that we announce the passing of Ibu Raisis Arifin Panigoro, MedcoEnergi's Advisor (2022 - 2024). Her service and contribution made her a role model for all of us.

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Login | Wednesday, 28 February 2024 |

MedcoEnergi in 2013 : Maintaining Stable Operation Performance And Laying Ground for Growth Through Major Project Delivery

Media Release


MedcoEnergi in 2013 : Maintaining Stable Operation Performance And Laying Ground for Growth Through Major Project Delivery


  • Total oil and gas production – 62 MBOEPD (68 MBOEPD IN 2012)
  • Coal Production – 634,000 MT
  • Weighted-average realized oil price – USD 108.3/barrel (USD 115.6/barrel in 2012)
  • Weighted-average realized gas price – USD 5.41/MMBTU (USD 4.03/MMBTU in 2012)
  • Average coal price – USD 81.92/MT (USD 68.59 MT in 2012)
  • Sales and Operating Revenues – USD 889 million (USD 904 million in 2012)
  • EBITDA – USD 349 million (USD 346 million in 2012)
  • Net Income (profit attributable to equity holder of the parent) – USD 12.6 million (USD 12.6 million in 2012)

2013 Balance Sheet and Cash

Total Asset USD 2.532 billion, Total Liabilities USD 1.635 billion and Equity USD 897 million Cash and cash equivalent at year end USD 264 million.

MedcoEnergi today announced its financial and operational results of the full year ended 2013. In this period MedcoEnergi reported its sales and operating revenues of USD 889 million. The oil and gas Exploration and Production (“E&P”) remains as the main business unit, contributing 93% of total sales revenues or USD 827 million. This is in line with the Company’s strategy that was launched in 2011 to focus on the E&P oil and gas business. The E&P revenues is generated based on a total oil and gas sales volume of 19 million barrel oil equivalent during 2013, a 7% decrease compared with the 2012 oil and gas sales volume of 20.5 million barrel oil equivalent. Likewise in previous years, MedcoEnergi has successfully managed to arrest natural production decline rate of mature fields of 20-25% per year to below 10% per year. The decrease in sales and operating revenues is also impacted by the lower average oil price of USD 108.3 per barrel in 2013, compared with USD 115.6 per barrel in 2012. In 2013, the Company successfully renegotiated several gas contract renewals and increased the weighted-average gas price significantly to USD 5.41 per MMBTU, a 34% increase compared with USD 4.03 per MMBTU in 2012.

With regards to MedcoEnergi’s Major Project, the Company, with its partners of Pertamina, Mitsubishi and KOGAS, has progressed the development of Senoro Upstream as well as the Donggi Senoro LNG (DSLNG) projects. The Senoro Upstream project has reached over 66% completion while the DSLNG project reached over 90% completion as of March 2014. The Company also executed a Gas Supply Purchase Agreement (GSPA) with PT Panca Amara Utama (PAU), a local ammonia producer company, in March 2014. Under the GSPA, MedcoEnergi will supply gas for 55 MMSCF per day to PAU with the agreed gas price indexed to international ammonia price. Both Senoro Upstream and DSLNG projects are slated for completion by the end of this year. In Area 47 Libya, the Company, through its joint venture of Nafusah Oil Operations B.V. (“Nafusah”) is preparing for a detailed engineering design work (“FEED”) that will be completed in this year and subsequently followed by the EPC contract award. In addition MedcoEnergi continues the exploration and appraisal drilling programs to capture more hydrocarbons from the remaining discovered fields in the Area 47.

In line with the Company’s continuous effort for cost efficiency, MedcoEnergi successfully reduced its head office and G&A (General & Administration) costs by 15% from USD 142 million in 2012 to USD 121 million in 2013. For the full year of 2013, the Company booked its gross profit and operating income of USD 367 million and USD 246 million respectively. The Earnings before Interest, Tax, Depreciation and Amortization (“EBITDA”) for 2013 was recorded at USD 349 million, increased from USD 346 million in 2012. With a strong cashflow position of USD 524 million in the beginning of 2013, the Company decided to retire several corporate loans, especially for loans which bear high interest rates. As a result, the financing cost can be reduced to USD 77 million (compared with USD 95 million in 2012). The Company’s net income from continuing operations is calculated at USD 40 million or relatively stable compared with USD 41 million in 2012. In October 2013 the Company decided to discontinue and close down its operation of Ethanol plant in Lampung due to insufficient sustainable feedstock supply which resulted in a loss of USD 24 million. The Company also takes into account for a prudent accounting policy and standard, and makes provisions of its several oil and gas assets to reflect the economic value of the assets. This asset, among others, is Nunukan exploration block. In the final result, MedcoEnergi records 2013 profit attributable to equity holders of the parent company (“Net Income”) from its continuing operations at USD 12.6 million.

Lukman Mahfoedz, President Director & CEO of MedcoEnergi cited that ”I am satisfied with the Company’s last year performance. The Company has proved its robust performance in operation as well as in financials under a much more challenging environment in 2013.” Lukman added, “Despite the challenge on lower oil price environment and cost efficiency in the Company, we yet maintain the progress of our major project development, particularly for Senoro Upstream, DSLNG and Libya Area 47 projects. With the commencement of Senoro Upstream and DSLNG by end of this year and followed by Block A and Libya projects in 2016 and beyond, I am very optimistic that our company growth can be sustained in the near term as well as in the long run.”