Medco Energi Plans to Invest $314 Million In Oil Exploration

PT Medco Energi said it will spend $314 million by the end of 2003 for oil exploration, drilling and acquisitions. The company may raise money for the plan through loans or the sale of bonds, said Sugiharto, Medco's chief financial officer.

Last week, the company completed a $100 million, 5-year bond sale, the first by a non-state company since Indonesia's financial crisis in 1998. The largest locally-owned oil company is bidding for a stake in an oil field in Tuban, East Java, and has been chosen as the preferred bidder, Sugiharto said, without providing details. Medco, 34 percent owned by Thailand's second largest gas producer PTTEP, is the fourth-largest crude oil producer in Indonesia with average daily production of 82,000 barrels last year.