Medco reports lower revenue
Saturday, March 29 2014 - 04:55 AM WIB
The company said in a statement Friday to unveil its 2013 financial performance that the oil and gas exploration and production (E&P) remains as the main business unit contributing 93 percent of the total sales revenue last year.
Total oil and gas sales volume last year declined by 7 percent to 19 million barrel oil equivalent compared to 20.5 million barrel oil equivalent in 2012. Oil and gas production fell to 62 MBOEPD last year from 68 MBOEPD in the previous year.
?The decrease in sales and operating revenues is also impacted by the lower average oil price of $108.3 per barrel in 2013, compared with $115.6 per barrel in 2012,? the company said in the statement.
The company said that net income was flat at $12.6 million.
With regards to its major project, the company said that together with partners PT 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 percent completion while the DSLNG project reached over 90 percent completion as of March 2014,? the company said. 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 Medco Energi continues the exploration and appraisal drilling programs to capture more hydrocarbons from the remaining discovered fields in the Area 47.
?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,? said Medco Energi President Director and CEO Lukman Mahfoedz.
Editing by Reiner Simanjuntak