Medco committed to Increase Oil and Gas Production

PT Medco E&P Indonesia continues to increase production, through various oil and gas exploration and exploitation activities in all work areas. This effort is a company's commitment in supporting the government to maintain national energy security. 

    

    Medco noted that oil and gas production in the first semester reached 86 thousand barrels of oil equivalent per day (BOEPD). The realization increased compared to the same period last year which was around 82,400 boepd.

Medco E&P Vice President of Relations and Security Drajat Panjawi said the realization of oil and gas production in the first half of this year came from 14 work areas spread across Indonesia. He emphasized that the production results were Medco's commitment in maintaining national energy security.

"The company is able to maintain, even increase total production in line with the integration of Ophir operations," Drajad said at a media gathering in Jakarta.

Ophir Energy plc

The integration of Ophir's operations is in line with the completion of the acquisition of Ophir Energy plc in May. Ophir's assets greatly complement MedcoEnergi's existing portfolio and this business combination makes the company a leading regional oil and gas business operator in Southeast Asia. 

     Ophir's acquisition will increase the company's production performance this year by 29% or 110 thousand BOEPD. Not only that, the combined magnitude of 2P reserves and 2C resources rose by 86% to 1.44 billion barrels of oil equivalent.

"This integration can confirm Medco E&P's position as a leading energy company in Southeast Asia," said Drajad.

In the same place, Head of the Program and Communication Division of the Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) Wisnu Prabawa Taher said, national oil production is currently around 750 thousand barrels of oil per day (BPD). However, SKK Migas targets to increase production to 1 million BPD by 2030. 

     He revealed, there are four strategies to achieve this target. In particular, it will maintain existing production, convert resources into production, intensify advanced oil recovery (EOR) drilling techniques, and continue to explore.

"Exploration is important because when we increase production it is through exploration," he said.

Wisnu revealed that around the US $ 1.7 billion in exploration funds came from the Certain Work Commitments (KKP) in the Cooperation Contract. Exploration activities are carried out not only within the oil and gas Working Area (WK) but also in open areas to encourage more new oil and gas fields to be discovered.

"When we talk about the exploration of how to fund investment, we have a KKP," said Wisnu.

IN INDONESIA

Medco Berkomitme Tingkatkan Produksi Migas

PT Medco E&P Indonesia terus berupaya meningkatkan produksi, melalui berbagai aktivitas eksplorasi dan eksploitasi minyak dan gas bumi di semua wilayah kerja. Upaya ini merupakan komitmen perusahaan dalam mendukung pemerintah menjaga ketahanan energi nasional. 

      Medco mencatat produksi migasnya pada semester pertama lalu mencapai rata-rata 86 ribu barel setara minyak per hari (barrel oil equivalent per day/BOEPD). Realisasi tersebut meningkat dibandingkan periode yang sama tahun lalu sekitar 82.400 boepd.

Vice President Relations and Security Medco E&P Drajat Panjawi mengatakan, realisasi produksi migas di semester pertama tahun ini tersebut berasal dari 14 wilayah kerja yang tersebar di seluruh Indonesia. Dia menegaskan hasil produksi itu merupakan komitmen Medco dalam menjaga ketahanan energi nasional.

“Perusahaan mampu mempertahankan, bahkan meningkatkan total produksi seiring dengan terintegrasinya operasi Ophir,” kata Drajad dalam acara media gathering di Jakarta.

Integrasi operasi Ophir seiring dengan rampungnya akuisisi Ophir Energy plc pada Mei kemarin. Aset Ophir sangat melengkapi portofolio MedcoEnergi yang ada dan gabungan bisnis ini menjadikan perusahaan sebagai pelaku usaha minyak dan gas regional yang terkemuka di Asia Tenggara. 

     Akuisisi Ophir ini akan meningkatkan kinerja produksi perusahaan tahun ini sebesar 29% atau menjadi 110 ribu boepd. Tidak hanya itu, besaran gabungan cadangan 2P dan sumber daya 2C naik sebesar 86% menjadi 1,44 miliar barel setara minyak.

“Integrasi ini dapat menegaskan posisi Medco E&P sebagai perusahaan energi terkemuka di Asia Tenggara,” tutur Drajad.

Di tempat yang sama, Kepala Divisi Program dan Komunikasi Satuan Kerja Khusus Pelaksana Kegiatan Usaha Hulu Minyak dan Gas Bumi (SKK Migas) Wisnu Prabawa Taher menuturkan, produksi minyak nasional saat ini sekitar 750 ribu barel minyak per hari (bph). Namun, SKK Migas menargetkan peningkatan produksi menjadi 1 juta bph pada 2030. 

     Dia mengungkap, ada empat strategi untuk mencapai target tersebut. Rincinya, pihaknya akan mempertahankan eksisting produksi, mengubah sumber daya menjadi produksi, menggencarkan teknik lanjutan pengeboran (enhanced oil recovery/EOR), serta terus melakukan eksplorasi.

“Eksplorasi penting, karena ketika kita menaikan produksi itu adalah melalui eksplorasi,” ujarnya.

Wisnu mengungkapkan, dana eksplorasi tersedia sekitar US$ 1,7 miliar yang berasal dari Komitmen Kerja Pasti (KKP) dalam Kontrak Kerja Sama. Kegiatan eksplorasi yang dilakukan bukan hanya di dalam area Wilayah Kerja (WK) migas, tetapi juga di area terbuka untuk mendorong ditemukan lebih banyak lapangan migas baru. 

“Kalau kita bicara eksplorasi bagaimana mendanai investasi, kita punya KKP,” kata Wisnu.

Investor Daily, Page-9, Monday, Dec 2,  2019

Medco More Aggressive

Medco Group intensified explore business in oil and gas, mining, and infrastructure since the second half of last year, the business group owned by the tycoon Panigoro family that has spent at least US $ 3.16 billion.

Arifin Panigoro

Most recently, PT Medco Energi Internasional Tbk. (MEDC) to buy a 35% stake in Inpex participation Natuna Limited which manages the South Natuna Block B which is equivalent to the US $ 167 million. 

   Purchases made through PT Medco Power Sentosa that make Medco as the majority shareholder with control of 75% of the shares. The remaining 25% of shares are in the hands of Chevron.

Certainty purchase was delivered directly by Inpex through its official page and MEDC President Director Hilmi Panigoro explanation. The signing of the transactions carried out in Tokyo, Monday (27/3). The process of transfer of shares scheduled to be completed in May 2017. We just signing yesterday. So, there is an additional 35% stake in the South Natuna Block B. [Medco] to 75%, "said Hilmi

the South Natuna Block B

Medco Power Sentosa, which buy shares of Inpex Natuna Limited, was established on November 1, 2016. A total of 99% owned by Medco Energi and the remaining 1% of shares owned by PT Medco Power Abadi Lestari, with total assets of Rp. 550 million.

Page Inpex said after about 40 years of production, earnings and cash flows they are more limited than the block. To optimize the asset portfolio globally, Inpex release all of its shares in Inpex Natuna Limited.

Hilmi Panigoro

Hilmi targets to increase participation rights of ownership could encourage efficient Block B South Natuna. From the range of US $ 13 per Barrel of Oil Equivalent/BOE, he expects production costs down to $ 11 and even below $ 10 per BOE.

Previously, Medco disbursed US $ 2.6 billion for the acquisition of 82.20% stake in PT Newmont Nusa Tenggara (NNT) in June 2016 with funding support from the state-owned banks.

Giving credit worth US $ 360 million which is distributed by PT Bank Mandiri Tbk. Medco to support corporate action today has been entirely withdrawn. "It has drawn full," said Bank Mandiri Corporate Banking SEVP Alexandra Askandar

In addition to loans from Bank Mandiri business group owned by Arifin Panigoro's getting credit from PT Bank Negara Indonesia Tbk. worth US $ 240 million and PT Bank Rakyat Indonesia Tbk. US $ 150 million. In addition to loans for acquisition mine in West Nusa Tenggara, the bank also disbursed loans to Medco for some other projects. There is, but I do not remember the number, "said Alexandra.

Medco corporate action continues in September with a controlled subsidiary of ConocoPhillips holds operator rights and shareholding of 40% participation in Block B South Natuna. The acquisition was worth US $ 240 million. Outside the oil and gas and mining sectors, in January of this year, Medco wins water treatment project in Umbulan, East Java, worth Rp 2.1 trillion, equivalent to US $ 157 million.

SHARE OUTLOOK

Senior Securities Analyst PT Binaanha Parama Reza Priyambada assess the acquisition will provide positive impacts to the stock performance MEDC. Moreover, commodity price projections for this year is relatively better so hopefully can encourage a positive outlook from Medco's future performance.

Reza reveals aggressiveness acquired Medco is quite intense so that there is a problem related to the liability of the company. However, management remains quiet for optimism.

"Liability is quite high, but they are quiet. This means that there is optimism. The Company does not fix DER but to improve their performance, "he said.

Binaartha several times to revise the MEDC stock price forecast of 1,300 to 3,460 range addition to performance enhancements, revisions as well as technical reasons where immediate resistance at that level.

Bisnis Indonesia, Page-1, Wednesday, March 29, 2017

Waiting for the Blessing of Crude Oil

    The performance of oil and gas issuers will get hotter after world crude oil prices continue to break new records, driven by OPEC's decision to cut production by 1.2 million barrels per day. The performance of oil and gas issuers until the third quarter of 2016 was still under pressure.

    Positive performance can only be achieved by PT Medco Energi Internasional Tbk. (MEDC), of the seven oil and gas issuers listed on the Indonesia Stock Exchange. A mining stock analyst from PT Recaptal Securities Kiswoyo Adi Joe assesses the blessing of crude oil prices can be achieved by issuers as early 2017. The skyrocketing crude oil price still needs further scrutiny to project the performance of issuers in Indonesia.

    The Brent oil contract traded at US$54.46 per barrel at the close in London, up 1% from its previous close. Throughout last week, Brent posted its most drastic gain since January 2009 with a 13% increase.

    Drastic strengthening also occurred in New York. The WTI contract traded 1.2% higher to its highest since July 2015 at US$51.68 per barrel. On the other hand, the price of Indonesian crude oil in November fell by US$ 3.39 per barrel from US$ 47.55 in October to US$ 43.25.

    Kiswoyo assessed that the trend of strengthening world crude oil prices would depend on demand. Winter in Europe and other countries are projected to increase demand. If the increase in oil prices persists, it will have a positive impact on the performance of issuers because the sale of oil is not carried out on a contract basis like coal.

    The upward trend will be confirmed when winter is over, but demand is still high. He assesses that oil and gas issuers will succeed if prices stay above US$ 80 per barrel for more than three months. The average cost of producing oil by issuers in Indonesia reaches US$20-US$35 per barrel.

    Senior Market & Technical Analyst at PT Daewoo Securities Indonesia Heldy Arifien assessed that oil and gas companies will still be the choice of market players until the end of this year. The oil and gas sector is projected to remain the prima donna of investors, especially in window dressing.

“We have a projected oil resistance of US$ 58 per barrel to US$60 per barrel. Until the end of the year, the average was US$ 48 per barrel. The oil price euphoria was used by investors for window dressing at least until the first quarter of 2017. Mining sector shares as of Thursday (Dec 1) shot up 73.76% throughout the year, far behind other sectors and the Jakarta Composite Index (JCI) which rose 13,19% (year-to-date).

Bisnis Indonesia, Page-1, Tuesday, Dec 6,2016

MEDC Acquisition of Two Subsidiaries ConocoPhillips Rp 3 Trillion

   It is clear how much money has been spent by PT Medco Energy Tbk (MEDC) to acquire ConocoPhillips Indonesia Inc. Ltd (CIL) and ConocoPhillips Singapore Operations Pte Ltd (CSOP). To take ownership of the two subsidiary companies of ConocoPhillips, Medco spent US $ 239 million. 

   When calculated in rupiah, the total acquisition value reaches more than Rp 3 trillion. This acquisition is divided into two separate transactions. The CIL acquisition value is the US $ 238 million, while the acquisition value of CSOP shares is the US $ 1 million.

    Medco acquisition, through its subsidiary, Medco Natuna. CIL is the beneficial owner of 40% participation of South Natuna Sea Block B (SNSB). Average CSop is a company that operates an onshore receiving facility in Singapore. In addition to getting the operating capability of offshore oil and gas integrated, this acquisition also strengthens our position, "said Fakhrini Nilamsari, Corporate Secretary MEDC. MEDC lately is diligent to make acquisitions.

    Previously, the family-owned issuers Arifin was official holds 50% ownership of PT Amman Mineral lnvestama, which has an 82.2% stake in PT Newmont Nusa Tenggara (NNT) with a value of US $ 2.6 billion acquisition. With the agenda, the automatic need for new sources of funding both to pay off previous debts in order to increase leverage as well as for capital requirements for assets recently acquired increased. In mid-September, MEDC issued bonds worth Rp 125 trillion.

    These bonds are part of the Sustainable Public Offering (PUB) II Phase II to total funds raised the target of Rp 5 trillion. These debt securities are divided into two series, namely Series A of Rp 284.1 billion with a fixed interest rate of 10.8% per annum and a term of three years. Then Series B worth Rp 208 billion with a fixed interest rate of 11.3% and a five-year tenure. Both bonds with a total of Rp 492 billion was secured with full capability (full commitment).

    Then, the remaining bonds amounting to Rp 758 billion will be secured with the best ability (best effort). MEDC will use the bond proceeds to pay down debt and capital expenditures. 60% of funds from the bond will be used to pay off the bonds I Medco in 2013 worth Rp 1.5 trillion. The bonds will mature in March 2018 with a coupon of 8.85%.

Kontan, Page-5, Tuesday, Nov, 22,2016