Medco cancels exploration programs amid price drop
Friday, February 20 2015 - 02:29 AM WIB
IDX-listed energy company PT Medco Energi Internasional Tbk has been forced to cancel some exploration activities both at home and overseas amid the current drop in the price of oil and gas.
Medco Energi CEO Lukman Mahfoedz told Petromindo.com that the company has also cut down capital expenditure by about 25 percent as part of cost saving measures to help cope with the price drop.
He did not provide further details. Medco has a number of oil and gas assets overseas including in Tunisia, Libya, Yemen, Oman, Papua New Guinea, and the US.
Meanwhile, Medco Energi Corporate Secretary Imron Gazali said that capital expenditure this year has been set at US$250 million, 30 percent lower than last year?s $330 million.
He added that the company would focus on projects which have obtained final investment decision, while exploration programs which have yet to be running will be put on hold.
Elsewhere, Lukman said that the Donggi Senoro LNG project in Central Sulawesi is expected to enter commissioning stage in March of this year.
Editing by Reiner Simanjuntak