Medco Energi, Owned By The Late Conglomerate Arifin Panigoro, Budgeted US$270 Million In Capital Expenditures To Increase Oil And Gas Lifting To 160 Thousand Barrels Per Day

Illustration. (Photo: Doc. Antara)

JAKARTA - The oil and gas company owned by the late conglomerate Arifin Panigoro, PT Medco Energi Internasional Tbk. (MEDC) has prepared capital expenditure (capex) to reach US$270 million this year. The company uses this capex to increase the amount of transported production or lifting of oil and gas (oil and gas).

Medco Energi targets the realization of oil and gas lifting to reach 160,000 barrels of oil per day (MBOPD) or up 6.6 percent from last year's score of 150,000 MBOPD. President Director of Medco Energi Hilmi Panigoro said the capital expenditure allocation was prepared to increase the company's oil and gas production and reserves amidst global energy supply disruptions.

"We will still focus on developing oil and gas production and reserves as the company's core business. Meanwhile, MEDC only allocates a budget of 30 million US dollars for the development of power plants this year," said CNBC Indonesia's Talk To Titans event, quoted on Wednesday, June 8.

As a company based on non-renewable energy natural resources, said Hilmi, increasing production and reserves is the basis.

"Because as long as people still consume oil, gas, coal, we have no choice," he said.

Hilmi further said that the budget allocation, which focuses on increasing oil and gas production and reserves, will be used to optimize the exploitation of available wells, explore new blocks and acquire a number of potential wells. However, MEDC is still relatively difficult to explore new oil and gas blocks towards the high seas.

According to Hilmi, the investment that must be made by the Cooperation Contract Contractors (KKKS) is too expensive to carry out.

"Indonesia needs companies capable of deep sea exploration, Pertamina and Medco do not allow exploration with an activity value of up to 100 million US dollars," he said.