MedcoEnergi Eyes 50% Contribution from Foreign Oil, Gas Projects by 2017

Indonesia's PT Medco Energi Internasional (MedcoEnergi) expects overseas projects to contribute half of the company’s petroleum production and revenue by the end of 2017 amid a major expansion of its oil and gas business, a senior executive told local daily The Jakarta Post .

“At the moment our projects abroad make up about 40 percent of our revenue and around 30 percent of our output,” Medco Energi’s corporate secretary Imran Gozali said.

The Indonesian firm currently operates oil and gas projects in six countries, namely the US, Libya, Oman, Yemen, Papua New Guinea and Tunisia -- the company's latest addition as falling reserves prompted the company to look for new blocks abroad and boost production from its existing projects.

MedcoEnergi received approval to commence activities in eight oil and gas blocks in Tunisia last month following its $114.03 million acquisition of Storm Ventures International (Barbados) Ltd. from Storm Ventures International Inc. -- a subsidiary of Toronto-listed Chinook Energy Inc. The new blocks will add around 12.3 million barrels of oil equivalent (MMboe) to MedcoEnergi's reserves and produce 2,800 barrels of oil equivalent per day (boepd) and up to 16,000 boepd after development work are completed.

MedcoEnergi has allocated $4.1 billion in capital expenditure (capex) to develop both the firm’s domestic and overseas projects through 2017.

“The capex will be spent on our Senoro project (Central Sulawesi), Block A gas project (Aceh) and Simenggaris gas project (East Kalimantan) as well as our projects in Libya and Tunisia,” Imran said. 

Domestically, MedcoEnergi's Block A gas facility project, costing $797 million, will be able to produce around 63 million standard cubic feet per day (MMscf/d) of gas to supply the Arun-Belawan pipeline when it commence operations at the end of 2016. The $2.8 billion liquefied natural gas (LNG) plant project at its Senoro oil and gas field, which can produce 310 MMscf/d of gas, is targeted to begin operations in 2015.

Turning to its overseas projects, MedcoEnergi is developing the Area 47 oil field in Libya to produce 50,000 boepd and 47 MMscf/d of gas at a cost of $250 million.

MedcoEnergi's oil and gas production is estimated to reach 100,000 boepd by 2019,  up 60 percent from current levels, as ongoing projects commence production. The firm's total petroleum production fell 8.82 percent to 62,000 boepd last year, compared to 68,000 boepd in the previous year amid declining reserves, The Jakarta Post reported.



Have a news tip? Share it with Rigzone!
Email news@rigzone.com

WHAT DO YOU THINK?

Click on the button below to add a comment.
Post a Comment
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.

Related Companies
Events  SUBSCRIBE TO OUR NEWSLETTER

Our Privacy Pledge
SUBSCRIBE

More from this Author
Rigzone Staff
e-mail us at news@rigzone.com
 -  CNOOC Commences Production from Enping... (Jan 18)
 -  Eni: Oil, Gas Discovery in Norwegian S... (Jan 17)
 -  Tullow Finds Oil in Kenyan Erut-1 Well (Jan 17)
 -  Utgard, Byrding Field Development Plan... (Jan 17)
 -  E&P Consultants Earning 27% Less than ... (Jan 17)


Most Popular Articles

From the Career Center
Jobs that may interest you
Drilling Engineer
Expertise: Drilling Engineering
Location: Tulsa, OK
 
Senior Revenue Accounting Specialist
Expertise: Accounting
Location: Houston, TX
 
Technical Writer - Greeley Colorado
Expertise: Petroleum Engineering|Technical Writing
Location: Greeley, CO
 
search for more jobs

Brent Crude Oil : $55.47/BBL 0.69%
Light Crude Oil : $52.48/BBL 0.30%
Natural Gas : $3.41/MMBtu 0.29%
Updated in last 24 hours