Medco's Oil And Gas Production Drops 5 Percent, Here's The Cause!

Migas (Photo: dock. Unsplash)

JAKARTA - PT Medco Energi Internasional Tbk (MEDC) announced the production performance of its company's kinyak and natural gas in the first semester of 2024.

In the 2024 Public Expose, MEDC Director & Chief Operating Officer Ronald Gunawan said for the first half of 2024, petroleum production and MEDC gas were above the company's guidelines but 5 percent lower than the first half of 2023.

"This is due to a reduced right to manage the Corridor Block after the PSC extension," he said, Monday, August 26.

Just so you know, Medco E&P uses a product sharing contract (PSC) scheme to be amended again using a cost recovery scheme, from previously using a gross split scheme.

In addition, he continued, the demand for lower piped gas in Singapore, as well as the recent divestment of Block 12 in Vietnam.

Earlier in April 2024, Medco announced the successful completion of the divestment of all its shareholdings in Ophir Vietnam Block 12W BV (OVBV) to Bitexco Energy Company Limited.

OVBV holds 31.875 percent of participation rights in Chim Sao and Dua (Blok 12W), oil and gas production fields located in Vietnam.

"The first semester of 2024, about 70 percent of our production is gas and 30 percent is oil," he said.

On the other hand, Ronald said, the share of oil production and Medco condensate also increased compared to 2023 in line with the completion of the acquisition process for Block 60 in Oman.

Just so you know, Medco completed the acquisition of 20 percent ownership in two Exploration and Production Sharing Agreements (EPSA) at the Sultanate of Oman from OQ Exploration & Production LLC (OQEP).

Medco Energi acquired 20 percent ownership of the EPSA produced by Block 60 and 20 percent ownership of the EPSA exploration Block 48, both located on land, to be precise in the western part of Oman near the Saudi Arabian border.

In the first half of 2024, the production performance of Block 60 Oman went well producing 12,500 barrels of oil per day and immediately gave Medco positive cash flow.

"We have also completed drilling 42 wells out of 69 wells planned throughout 2024," he concluded.