Medco expects 20 percent increase in oil production

JAKARTA (JP): Publicly listed oil and gas company PT Medco Energi International expects its average oil production to surge 20 percent to 80,000 barrels of oil per day (bpd) this year, from 66,800 bpd last year.

The company's average gas sales is also expected to rise 20 percent to 80 million cubic feet per day (MMCFD), compared to 66 MMCFD last year.

Medco said in statement on Tuesday that it was raising its gas and oil production to benefit from the continued increase in demand.

The company's realized oil production during the first quarter of this year increased more than 20 percent to 73,800 bpd, from 60,900 bpd in the same period last year. Its gas sales rose 17 percent to 77.5 MMCFD from 66.2 MMCFD.

The company said the growth in oil production was largely the result of an increase in production at the Kaji/Semoga field in the Rimau Block in South Sumatra, while gas sales were higher because of a rise in supplies to the PUSRI fertilizer plant in Palembang and to the Bunyu methanol plant.

In April, the company's oil production continued to grow reaching 75,000 bpd, while gas sales reached 80 MMCFD, the company added.

"Therefore, we're optimistic of achieving our target this year," it said.

The company added that oil production would further increase if it stared to operate its oil plant on Tiaka island in Central Sulawesi later this year. The plant has the capacity to produce 8,000 bpd.

Medco also said it was hopeful its rig utilization rate would grow as oil companies increased drilling in response to continued strength in global oil prices.

It said that offshore rig utilization increased to 94 percent between January and March, compared to 67 percent in the same period last year. Onshore rig utilization reached 27 percent from 26 percent in the first quarter of last year.

Last year, the company's revenue almost double to Rp 3.1 trillion (US$281 million) from Rp 1.6 trillion in 1999.

Oil and gas production accounted for about 82 percent of the company's total revenue in 2000, compared to 66 percent the previous year. Other revenue came from its drilling services.

The company also recorded a more than threefold increase in net profit to Rp 572 billion last year, from Rp 176 billion in 1999. (05)