Medco sees 20% earnings growth in 2003 on higher oil prices

The Jakarta Stock Exchange listed oil and gas company PT Medco Energi International said its 2003 earnings are expected to grow by 20 percent on the back of higher oil prices in the event of possible war in Iraq, AFX-ASIA reported on Wednesday

"We expect a 20 percent earnings growth this year if oil prices reach US$ 30 per barrel, compared to $ 25 in the previous year," Medco investor relations officer Wira Katoppo said.

He said the 20 percent earnings growth estimated for this year also assumes there will be no increase in production.

"We have an annual target for production growth to improve shareholder value, but we cannot expect it (at this time)," Katoppo said.

He said the company might improve production capacity either through exploration or acquisition of new production blocks.

Last year, the company acquired two new production blocks and three exploration blocks.

The company previously said it was interested in acquiring 10 oil fields offered by three foreign companies located in Java and Sumatra this year. (*)