The Oil And Gas Production Of This Arifin Panigoro Conglomerate-owned Company Fell 7 Percent In The Third Quarter Of 2021

Illustration. (Photo: Doc. Medco Energi)

JAKARTA - PT Medco Energi Internasional Tbk (MEDC)'s oil and gas production realization during the first 9 months of this year is lower than the same period last year.

The realization of Medco's oil and gas production in January-September 2021 was recorded at 93 million barrels of oil equivalent per day. The realization was 7 percent lower when compared to the same period last year.

The company owned by conglomerate Arifin Panigoro stated that the low oil and gas production this year was caused by the extended downtime in the second quarter and low domestic gas demand during the implementation of the tightening of community activities.

However, during that period, MEDC's oil and gas production costs were recorded at the level of 9.3 US dollars per barrel of oil equivalent. Meanwhile, the company recorded capital expenditures for the oil and gas segment of US$31 million which was used for the development of several oil and gas projects in the South Natuna Sea Block B PSC.

The development work will continue through 2022, with the first gas at the Hiu field expected in the second quarter of 2022, the first gas at the Belida Extension Project in the fourth quarter of 2022, and the first oil at the Forel field and gas at the Bronang field expected in the fourth quarter of 2023.

In addition, throughout the third quarter of 2021, MEDC has obtained a 20-year cooperation contract extension (PSC) for the Senoro-Toili (Senoro) Block effective December 2027.

"I am pleased to report another period with better results. Commodity prices remain volatile but are still at a good level and domestic gas demand continues to recover after the economic lockdown due to COVID-19", said Medco Energi CEO, Roberto Lorato, in an official statement, quoted as saying Monday, December 20.

He also said that the proposed acquisition of ConocoPhillips' assets in Indonesia would strengthen MedcoEnergi's position in Southeast Asia, generate synergies with the company's operations in Sumatra, as well as support our climate change strategy.

Meanwhile, Medco Energi President Director, Hilmi Panigoro, said that his party was quite satisfied with the realization of the performance that had been recorded throughout the period.

"I am pleased to see the improvement in MedcoEnergi's performance and the support of our stakeholders for the extension of the Senoro-Toili PSC. The Corridor acquisition now strengthens MedcoEnergi's position", he explained.