Medco's gas production surge 36 percent

Publicly listed oil and gas company PT Medco Energi International reported a 36 percent increase in its natural gas production to 117 million cubic feet per day (MMCFD) as of the end of May from about 86 MMCFD at the end of 2003, Investor daily reported Saturday.

The company's finance director Sugiarto, however, said that unlike gas output, its crude oil production dropped to 55,000 barrels per day (BPD) as of May from 60,000 BPD at the end of last year.

But, he said, revenue from crude oil surged despite the drop in the production thanks to the increase in crude oil prices in the world market to an average of $33 per barrel from about $22 per barrel last year.

Sugiarto said that the company would further intensify exploration activities in the existing oil fields and to acquire active oil fields from other oil companies to further increase crude oil production in the future.

He said that Medco had allocated fresh funds of between $300 million and $400 million to acquire oil fields this year. He also said that the gas produced from the company's concession areas would be processed into liquefied natural gas (LNG) to increase the added value of the commodity. The LNG will be further processed into methanol for the Japanese market. (*)