Medco sets expenditure of US$1.174b for 2012
Monday, February 6 2012 - 01:39 AM WIB
IDX-listed oil and gas company PT Medco Energi Internasional Tbk has set expenditures of US$1.174 billion for 2012. Of this amount, US$356 million will be allocated for capital expenditures (capex) and the remaining $818 million for operational expenditures (opex).
The capex will be allocated for development of key projects, such as Donggi Senoro LNG project in Sulawesi island, drilling programs and ongoing enhanced oil recovery (EOR) of Rimau block in South Sumatera with a total capex of $206 million. About $77 million will be spent for exploration activities and $73 million for non-oil and gas activities.
The expenditure is aimed to support the company?s target to reach production of 57,000 barrels of oil equivalent per day (boepd) this year, the company said in a presentation material delivered to media on Saturday.
As for drilling program, the company plans to drill 29 wells in domestic working areas this year, comprises of 20 production wells and 9 exploration wells. In overseas concessions, the company plans to drill 30 wells in Oman, two wells in the United States concession and drilling two wells in Libya.
In Libya, the company is finalizing a drilling of well in Area 47 and preparing to drill another exploration well. As part of effort to resume activities in Libya, the company?s executives visited Libya on January 16-22 led by Lukman Mahfoedz, President Director of PT Medco E&P Indonesia.
The company said it is in strong position to move forward given its cash and cash equivalent position per end September 2011 at US$497 million. Its key strategies this year will be inviting strategic partners to develop its high value assets, increasing production of existing oil and gas fields, applying enhanced oil recovery program (EOR) in Rimau Block and continuing key projects such as the Donggi Senoro LNG project.
Major ongoing projects of Medco Energi:
| Project | Completion Target | Description | Ownership (%) | Partners |
| Block A | 2013 | Development of gas project with production target of up to 110 mmscfd | 41.6 | Premier, Japex |
| Rimau | 2012 | Implementation of Enhanced Oil Recovery | 95 | PD-PDE |
| Senoro | 2014 | Development of gas field to reach production target of 250 mmscfd | 30 | Pertamina & TEL |
| Donggi Senoro LNG | 2014 | Development of single train LNG plant with capacity of 2.1 million tons per annum (mtpa) | 11.1 | Pertamina, Mitsubishi & KOGAS |
| Libya 47 | 2014 | Development of oil block with production target of 50,000-100,000 bopd | 50 | Libya Investment Authority |
Editing by Roffie Kurniawan