Medco sees flat output next year
Monday, December 8 2014 - 01:46 AM WIB
Kontan quoted Frila Berlini Yaman, President Director of PT Medco E&P Indonesia, a subsidiary of Medco Energi, as saying that 43,000 boepd of the targeted output will come from domestic blocks, while the remaining 17,000 boepd from overseas blocks operated by Medco.
Capital expenditure for next year is projected at US$450-500 million. Frila said that the current drop in global oil price has become a major challenge. ?We?ll try to tighten belt through efficiency, and we?ll try to increase selling price of gas, one of which with PT Pupuk Sriwijaya, to optimize revenue,? Frila said.
Going forward Medco plans to realize a number of projects such as in Block A, Simenggaris, Libya, and Tunisia.
Elsewhere, Frila said that Medco E&P is still interested in continuing to operate the Kampar oil and gas block in Riau as it is still economical to be developed for another ten years.
Medco?s contract in managing the block expired November 2013, but the government assigned the company as temporary operator of the block for another year. The previous government wanted to hand over the block to state-owned oil and gas firm PT Pertamina, but there?s indication that Medco might be allowed to continue to manage the block in partnership with Pertamina and company owned by the Riau provincial administration, Kontan quoted Frila.
The Kampar block has been in production for the past 30 years, with average oil output of 1,800 bpd. (*)