Medco needs $2 billion to finance main projects
Friday, July 11 2008 - 02:20 AM WIB
The main projects include the development of the Senoro-Toili LNG plant in Central Sulawesi, the development of the Block A gas field in Aceh, the development of its oil and gas field in Libya, the development of the Sarula geothermal power plant in North Sumatra and the development of an ethanol plant in Lampung.
Medco?s finance director Cyril Noerhadi said in Jakarta on Thursday that the company would get fresh funds from the sales of its 48.72 percent stake in drilling firm PT Apexindo Pratama Duta to PT Mitra Rajasa.
He said that the remaining funds would be covered from the sales of the company?s interests in seven oil and gas blocks including the Rimau PSC, Lematang PSC, Kakap PSC, Langsa TAC, Bawean PSC and Jeruk field.
According to Cyril, each of the oil and gas blocks has received interests from at least two investors. Medco is expected to complete the sale of its oil and gas blocks in September this year.
The firm would also take $500 million from its internal resources and issue bonds worth US$1 billion to finance the projects, he said.
He also said Medco was approaching banks such as Japan Bank of International Coorporation (JBIC) dan Asian Development Bank (ADB) to get loans. (*)