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.

Continue to website
Login | Monday, 22 July 2024 |

MedcoEnergi 2016 Annual Results

Media Release


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.