Medco Energi to buy Lasmo's Malacca Straits<\/p>\n
JAKARTA (JP): Publicly-listed oil company PT Medco Energi
\nCorporation is acquiring a 23.4 percent interest in the Malacca
\nStraits Production Sharing Contracts area from Lasmo Oil (Malacca
\nStraits) Ltd. of Britain and its affiliates.<\/p>\n
President of Medco Energi, Hetriono Kartowisastro, said
\nyesterday that his company signed an in-principle agreement with
\nLasmo in May. However, he declined to mention the value of the
\nacquisition, saying that the acquisition process is not final
\nyet.<\/p>\n
\"The acquisition of Lasmo's interest is still subject to their
\npartners' preemption rights and an approval from the state-owned
\noil company Pertamina,\" Hetriono said after attending the annual
\nMedco shareholder meeting.<\/p>\n
He added that the operatorship of the oil contract area will
\nbe transferred to a specially designated subsidiary of Medco.<\/p>\n
Medco is the first oil company listed on the Jakarta Stock
\nExchange. It floated 21.7 percent of its enlarged capital base
\nthrough an initial public offering on the exchange last October.<\/p>\n
Medco is a holding company of four subsidiaries, including
\nonshore drilling company PT Meta Epsi Antareja, offshore drilling
\nfirm PT Apexindo Pratama Duta and two other oil and gas
\nexploration and production companies PT Etaksatria Petrasanga and
\nPT Eksita Pantranagari.<\/p>\n
John Karamoy, president of Etaksatria and Eksita (Expan), said
\nthe Malacca Straits contract area currently produces some 25,000
\nbarrels per day (bpd) of crude oil. \"If we proceed with the
\nacquisition, we will control one third of that level.\"<\/p>\n
Medco's oil production level stood at an average of 5,389 bpd
\nlast year, decreasing by 4.6 percent from the previous year's
\nlevel of 5,638 bpd.<\/p>\n
Methanol<\/p>\n
The shareholders' meeting agreed on the company's plan to take
\nover the operation of the Bunyu methanol plant in East Kalimantan
\nfrom Pertamina.<\/p>\n
\"We received approval from Pertamina early this year, and the
\noperating agreement is currently under negotiation. We expect to
\nbegin the operation of the methanol plant later this year,\" said
\nSugiharto, Medco's finance director.<\/p>\n
The Bunyu plant, which has an annual production capacity of
\n330,000 metric tons, is currently the only methanol plant in the
\ncountry.<\/p>\n
The Humpuss Group, through its subsidiary PT Kaltim Methanol
\nIndustry, is building the country's second methanol plant in
\nBontang, East Kalimantan, with an annual capacity of 660,000
\nmetric tons, which is expected to start its commercial production
\nin 1997.<\/p>\n
Yesterday's meeting also approved Medco's plan to diversify
\nits operations into power generation.<\/p>\n
Hetriono said his company, in a fifty-fifty partnership with
\nEnron Development Co. of the United States, is in the final stage
\nof negotiations with the government for a build, own and operate
\n(BOO) contract for a 136 megawatt gas-fueled power plant in
\nSamarinda, East Kalimantan.<\/p>\n
He added that the construction of the plant is projected to
\nstart next year with the first 68-megawatt unit to start
\noperating in 1997 and the second in 1999.<\/p>\n
At the shareholders' meeting, the company reported a net
\nincome of Rp 18.4 billion (US$8.26 million) with earnings per
\nshare of Rp 181.6, 37 percent higher than last year's Rp 13.4
\nbillion.<\/p>\n
However, the company's profit margin decreased by 17.9 percent
\nbecause of the international oil price volatility and the
\ndecrease in average oil price to an average of $16.15 per barrel
\nas compared to $17.55 in 1993.<\/p>\n
This year the company expects a 50 percent increase in net
\nprofits. \"We are confident with our projection of a 50 percent
\nincrease in net profits because of the better oil prices and the
\nexpansion of our operations, including the methanol plant, the
\nMalacca Straits oil field and the operation of our new jack-up
\nrig,\" Sugiharto said. (rid)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/medco-energi-to-buy-lasmos-malacca-straits-1447893297",
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