Medco?s oil, gas output up 14.8%

By Thomas Sembiring

IDX-listed energy company PT Medco Energi Internasional Tbk saw oil and gas output in the first nine months of this year increased by 14.8 percent to 63.9 mmboepd compared to 55.6 mmboepd in the corresponding period of last year.

Medco Chief Operating Office, Ronald Gunawan, said Wednesday to Petromindo.com that the January-September 2016 output performance has exceed the company?s full-year production target of 58-61 mboepd.

He acknowledged that oil output in the nine-month 2016 period slightly declined to 29.8 mmboepd from 31.6 mmboepd, while gas output increased to 34.1 mmboepd from 24 mmboepd. The higher gas output was contributed by production from the Senoro filed.

Ronald said that realized average oil price in the first nine months of this year was US$39.5 per barrel, lower compared to last year?s average of $53.9 per barrel. Meanwhile, average gas price in the first nine months of this year was $4.2 per mmbtu, compared to $5.5 per mmbtu in the same period of last year.

Ronald said that in terms of financial performance, cost efficiency measures have help reduced the impact of sharp decline in the oil price.

Medco in the January-September 2016 period booked a net profit of $22.3 million compared to a net loss of $51 million in the same period of last year. Oil and gas sales revenue declined to $416.9 million from $418.1 million.

Medco allocated up to US$145 million worth of capex for this year, and in the first nine months, about $87 million has been spent.

Ronald said that lifting cost in the nine-month period of this year stood at around $8 per boe, lower compared to guidance of $10 per boe.

Editing by Reiner Simanjuntak