Medco to spend $125m for ethanol and gas projects
Tuesday, September 23 2008 - 01:58 AM WIB
Medco?s finance director Cyril Noerhadi said in Jakarta recently that about $45 million of the total funds would be used for the construction of the ethanol plant, and the other $80 million for the development of the Singa gas field.
He said that the ethanol project, which is located in Kotabumi, North Lampung regency, would have a production capacity of 180 kiloliters per day or 60,000 kilolitres a year.
He also said that Medco needed about $80 million for the development of the Singa gas filed in Lematang block which was expected to be able to produce 50 million standard cubic feet of gas per day.
About 30 percent of the required funds would come from the company?s internal source, and the remaining 70 percent from bank loans. ?Bank Central Asia has committed to providing $56 million for the gas project,? he added.
Earlier, Medco has awarded US$65 million EPC contract to develop Singa gas field to national contractor PT.Inti Karya Persada Teknik (IKPT).
The company said in a presentation posted in its website that the field is expected to become onstream end of 2009.
The company has signed 9-year deal to sell 130 BCF of Singa gas to state electricity firm PLN at average price of $3.22 per MMBTU.
Medco has 74 percent interest in the block, with the remaining balance held by Swedish firm Lundin petroleum. (*)