Medco's oil , gas output declines in first nine months
Wednesday, November 7 2007 - 01:39 AM WIB
The decrease was mainly due to the natural decline in oil production in the Rimau block, the company said in a statement.
Gas production decreased by 11.3 percent to 116.30 BBTUPD until the end of third quarter from 131.18 BBTUPD in same period of 2006, mainly due to an output decline in Tarakan PSC and the divestment of Brantas PSC which still contributed to gas sales in the third quarter of last year.
The firm sold its crude and gas at the average prices of US$66.86/Bbl and $2.81/MMBTU respectively until the end of third quarter compared to $66.33/Bbl and $2.49/MMBTU a year earlier.
A lower supply of associated gas from the Rimau block resulted in a decrease in LPG sales by 22.9 percent in the first nine month 2007 to 78.31 MTD from 101.52 MTD in the same period of 2006. However, it was offset by the increase in realized LPG price by 18.4 percent to $375.12/MT this year from $316.79/MT in 2006.
The unexpected decline in reserves and production from the Tarakan block significantly decreased methanol production and sales in the first nine months of the year.
In the period, Medco produced 71,000 MT and sold 68,000 MT of methanol, or around 40 percent lower compared to 120,000 MT and 122,000 MT in the same period of 2006. However, the methanol average price increased by 5.3 percent to $240/MT in the first months of the year from $228/MT in the year-ago period.
Fuel distribution, the company?s new line of business, which started in June 2007, traded 15,089 kiloliters of HSD until the third quarter of the year.
Meanwhile, Medco maintained a 100 percent utilization rate for swamp-barge offshore rigs and slightly increased daily revenue from the operation of the rigs by 2 percent to $50,819 in the first nine month 2007 from $49,691 in the same period 2006.
At the same time, the increase in demand for onshore rigs also increased rental rate. Thus, daily revenue from the rigs increased significantly by 30 percent in the first nine month of 2007 to $22,827 from $17,570 in the same period of 2006.
The full operation of new gas fueled power plant in Batam Island, Panaran II, in the first nine month 2007 has increased the firm's power supplies by 65.4 percent to 367.89 GWH compared to 222.38 GWH in the same period 2006.
The Panaran I power plant managed to increase its supply by 17.4 percent to 320.70 GWH in the first nine months 2007.(denny)