Medco to spend US$1.67 billion in five years
Wednesday, June 16 2004 - 03:29 AM WIB
Publicly listed oil company PT Medco Energi International Tbk will set aside at least US$1.67 billion to finance its expansion plan and operational costs in five years, Bisnis Indonesia daily reported on Wednesday.
Medco’s finance director Sugiharto said in Jakarta on Tuesday that about US$929.3 million of the total spending would be used for operational expenditure, US$554 million for capital expenditure and the remaining US$187.7 million for exploration.
“We hope in five years, Medco will be able to develop 203 new oil wells and 76 exploration wells, “ Sugiharto was quoted as saying by the daily. He said in 2004, the company would spend about US$244 million and about US$60 million of the total would be used for operational costs, US$150 million for capital expenditure, and US$34 million for exploration.
With such spending plan, Medco is expected to be able to find 40 new oil wells and 14 exploration wells this year, he added.
According to Sugiharto, the company would also expand its activities in the Middle East such as in Oman to take the advantage of the network of the company’s newly acquired subsidiary Novus.
He said that at present Novos has two subsidiaries in the Middle East including Greater Bukha and Northern Arabian Gas Condensale. Novus owns 40 percent and 100 percent interest in the two companies, respectively. (*)