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Medco Energi signs $200 mln loan for Senoro upstream gas field development

JAKARTA ( –  PT Medco Energi Internasional Tbk, through its subsidiary PT Medco E&P Tomori Sulawesi, has signed a Term Facility Agreement worth US$200 million on Nov. 24, 2015 with PT Bank ANZ Indonesia, PT Bank DBS Indonesia, PT Bank Mandiri (Persero) Tbk, Standard Chartered Bank and Sumitomo Mitsui Banking Corporation (SMBC) to refinance an upstream gas operations in Senoro Field, Senoro-Toili PSC Block, Central Sulawesi.

All those five prominent banks acted as Joint Mandated Lead Arrangers for a Term Facility (with SCB acting as Global Coordinator).

With MedcoEnergi’s credit standing, the Banks were able to secure initial commitments for the Term Facility in the amount of US$ 350 million.

Nonetheless, MedcoEnergi opted to execute a Term Facility in the amount of US$200 million, which demonstrated a 1.75x over subscription. Since April 2015, when the gas production facilities reached its mechanical completion, the Senoro Upstream Gas has exhibited a steady ramp up gas production and the facilities currently produces gas above its daily contractual obligation of 250 MMSCF per day.

The cumulated gas production is targeted at 69,440 BBTU by end of 2015. To date, the gas has been sent to PT Donggi Senoro LNG (DSLNG), a joint venture company of MedcoEnergi, PT Pertamina (Persero), Mitsubishi and Kogas, for LNG production.

Up to now DSLNG has shipped 9 LNG cargoes and it expects to ship a total of 12 cargoes by year end of 2015.

Lukman Mahfoedz, President Director & CEO of MedcoEnergi stated, “This Agreement indeed reflects a good standing credit reputation of the Company whereby we can still secure funding amidst the current low oil price. This refinancing will accumulatively contribute to a total of US$600 million fund raising exercise in 2015 for the purpose of general capital investment and refinancing of MedcoEnergi’s indebtedness.”

On Wednesday (Nov 26), Lukman was replaced by Hilmi Panigoro as President Director of Medco Energi. (*)


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