JAKARTA (Rambu Energy) – PT Medco Energi International Tbk said as of end of the first quarter of 2014, the company’s major projects had shown good progress. The Senoro gas development project has reached 71 percent completion whilst the Donggi Senoro LNG plant has reached 98 percent completion.
Lukman Mahfoedz, President Director of Medco Energi, said Medco expected to receive first Senoro gas supply for commissioning by the third quarter of 2014. The gas development project in Block A is in the process of finalizing the gas supply contract with Pertamina (for onward supply to Pupuk Iskandar Muda) and PLN, including a gas price increase.
In January 22, 2009, Medco Energi signed gas sales agreement (GSA) with PT Donggi Senoro LNG (DSLNG) to supply 250 million standard cubic feet per day (MMSCFD) of gas for 15 years with the price being tied to Japan Crude Cocktail (JCC). Moreover, the company also put an effort to increase its gas reserves by conducted drilling at Senoro-6 and Cendanapura-1 wells. The drilling resulted an increase of the Company’s gas reserves by the end of year 2010.
As at year end 2010, the Senoro-Toili Block (Tiaka Field) had 1P reserves of 483 MBOE and 2P reserves of 1,696 million barrels of oil equivalent (MBOE). Whereas the Senoro gas field had 1P reserves of 67,247 MBOE, 2P reserves of 71,345 MBOE, and gas contingent resources of 27,128 MBOE.
Medco Energi operates the Senoro-Toili PSC JOB Block together with the subsidiary company of PT Pertamina (Persero), PT Pertamina Hulu Energi Tomori Sulawesi. The Senoro-toili PSC JOB Block is comprised of two areas, Senoro (onshore) covering an area of 188 square kilometer and Toili (offshore) covering 263 square kilometer of area.
Currently, PHE Tomori Sulawesi holds 50 percent interest in Senoro-Toili PSC, Medco E&P Tomori Sulawesi, a subsidiary of Medco Energi, 30 percent and Mitsubishi Corporation 20 percent.
The other projects have also progressed well, he said. The Enhanced Oil Recovery (EOR) Pilot Project in the Rimau Block is deemed successfully completed by achieving the target additional oil recovery.
The Libya Area 47 project has commenced its detailed engineering design work (FEED) and will continue into the EPC contract award by early 2015.
Lukman Mahfoedz said the company sets aside US$441 million capital expenditure in 2014. Of this, US$61 million will be spent for producing assets and US$280 million will be used for developing projects, including explorations and development of block in Libya.
MedcoEnergi’s President Director & CEO, Lukman Mahfoedz, stated “We achieved our main target in oil and gas exploration and production despite the decline in oil production due to the natural decline of aging oil wells. We also finished the year 2013 on solid operating and financial performances to take the Company forward to accomplish and deliver our Major Projects development.”
“I am very confident that Medco Energi will grow significantly, commencing with the commissioning of our first Major Project, Senoro Gas, and the subsequent completion of other Major Projects in 2016 and beyond,” said Lukman Mahfoedz.
Currently, Medco produces oil at an average of 60,000 barrels of oil per day (bpd). It expects production to increase significantly over the next few years as a number of projects will come on stream. The Block A project in Aceh is expected to begin production in 2016, block in Libya in 2017. “We expect our production to increase to 100,000 barrels of oil equivalent in 2019,” Lukman Mahfoedz told reporters at press conference on Wednesday (April 30).
Medco Energi is publicly listed integrated energy company with focus in exploration and production of oil and gas business. Medco Energi has operations in Indonesia, including operating 9 oil and gas blocks, maintaining working interest in one block operated by partner, and holding economic participating interest in an exploration field.
In overseas, MedcoEnergi operates in Oman, Yemen, Libya, Papua New Guinea and Gulf of Mexico in the United States of America. In addition MedcoEnergi operates several gas-fired, coal power plants and supplies electricity to the Indonesian State-Owned Electricity Company (Perusahaan Listrik Negara/PLN), coal mining and also gas distribution business. (*)