• Newsletter
  • Contact
  • Press Releases
Saturday, June 7, 2025
Stay Ahead with Heaptalk: Your Go-To Source for Business News
  • Login
  • Register
  • Whats on
  • News
  • Events
  • Technology
  • Industry
  • GovAct
  • Expert Talk
  • Insight
  • Sustainability
No Result
View All Result
Stay Ahead with Heaptalk: Your Go-To Source for Business News
  • Whats on
  • News
  • Events
  • Technology
  • Industry
  • GovAct
  • Expert Talk
  • Insight
  • Sustainability
No Result
View All Result
Stay Ahead with Heaptalk: Your Go-To Source for Business News
No Result
View All Result
Home News

Medco Energi completes acquisition of ConocoPhillips assets

Wulan by Wulan
August 3, 2023
in News
0
medco energy
Share on FacebookShare on Twitter

Heaptalk, Jakarta –PT Medco Energi Internasional Tbk (MEDC) announced the completion of all the shares of Phillips Investments Inc. from ConocoPhillips Indonesia Holding Ltd. (CIHL).

Currently, CIHL owns 100% of ConocoPhillips (Grissik) Ltd (CPGL), which serves as the Operator of the Corridor PSC with a 54% working stake, and 35% of Transasia Pipeline Company Pvt. Ltd. (Transasia).

MedcoEnergi’s operations are adjacent to two oil and seven gas-producing fields in South Sumatra, Indonesia.

World Ai Jakarta 2025
World Ai Jakarta 2025

The majority of production is delivered to reputable partners in Indonesia and Singapore under long-term gas sales and purchase contracts. Through Transasia, MedcoEnergi has a small stake in the gas pipeline network that serves its customers in Central Sumatra, Batam, and Singapore.

“This acquisition is consistent with MedcoEnergi’s goal of owning and developing high-quality assets while generating positive cash flow,” said Hilmi Panigoro, President Director of PT Medco Energi Internasional Tbk, in an official statement released on Thursday (3/3)

This acquisition strengthens MedcoEnergi’s position as an independent energy and natural resources company in Indonesia. It also shows the company’s commitment to Indonesia’s growth.

Hilmi believes this deal will be good for MedcoEnergi’s business in Sumatra and for the company’s climate change strategy, which includes looking into ways to store carbon dioxide.

After the deal was completed, Hilmi detailed Medco Energi’s pro forma rules for the remainder of 2022. He stated that his party intends to produce 155 billion barrels of oil equivalent per day this year (MBOEPD). The cost of producing oil and gas per unit is less than US $10/boe.

Meanwhile, his entity intends to sell 3,500 GWh of electricity this year.

MEDC has planned a capital expenditure of US $275 million for the oil and gas segment and US $50 million for the electricity segment to meet this performance target.  

Exciting market prospects

From the standpoint of stock exchange prospects, there is an important aspect where CIHL owns 100% of ConocoPhillips (Grissik) Ltd (CPGL) and 35% of Transasia Pipeline Company Pvt Ltd (Transasia). With a 54 percent operating interest in the Corridor PSC, CPGL runs it.

Onshore South Sumatra is home to two oil-producing fields and seven gas production fields owned by Corridor PSC. People in Indonesia and Singapore buy a lot of the gas that comes out of the plant.

Frankie Wijoyo Prasetio, Head of Equity Trading MNC Sekuritas Medan, believes that the agreement to acquire all shares issued by Conoco Phillips Indonesia Holding Ltd. (CHIL) will undoubtedly broaden MEDC’s commercial coverage area, particularly gas supply in Indonesia and Singapore.

“The price of oil is going up all over the world, which means there will be more demand for other energy products like gas,” said Franky.

He also stated that the rise in commodity prices would benefit MEDC’s performance. MEDC has both oil and gas operations.

Furthermore, Frankie believes that in order to address the issue of global climate change, it is likely that the use of coal and oil will be reduced in the future.

As a result, the acquisition is regarded as a prudent move in terms of broadening the gas sector. This sentiment, according to Frankie, will help MEDC’s performance in 2022.

According to financial records from the third quarter of 2021 released yesterday, this oil and gas mining business had a net profit of US $56.12 million at the end of September last year.

This is in contrast to the same period the previous year when MEDC reported a loss of up to the US $180.50 million.

MEDC’s bottom line improved in tandem with its sales performance. Medco’s revenue was $955.92 million, a 12.7 percent increase over the previous year’s revenue of $846.90 million during the same period.

“Despite the slight increase in revenue, net income was supported by other income such as gains from fair value measurement of US 47.22 million and profits from associates and ventures, which skyrocketed from only US 4.97 million to US 46.84 million, where this revenue is projected to grow in the fourth quarter later,” Frankie said.

The increase in performance and net profit, which is expected to be positive in the fourth quarter of 2021, together with the continued high price of energy commodities, could be a stimulus for MEDC shares to rise.

Tags: acquisitionbusinesseconomyenergyInvestmentmedco energy

Related Posts

Paving the Way for Expatriate Homeownership: Savyavasa and Permata Bank Launch Exclusive Foreign Mortgage Program

Paving the Way for Expatriate Homeownership: Savyavasa and Permata Bank Launch Exclusive Foreign Mortgage Program

June 5, 2025
KL1 Phase 2 has been completed. Credit: Equinix

Equinix completes KL1 Phase 2 data center in Kuala Lumpur

June 2, 2025
Commemorating Professor Soemitro's 108th anniversary at Soemitro Center (05/29). Credit: Haris

Soemitro Center: A platform for Indonesia’s young economists

May 31, 2025
Lifree breathable adult diapers can help improve skin health. Credit: Haris

Unicharm research: Lifree improves quality of life for elderly

May 31, 2025
Xiaomi's premiumization strategy has yielded positive results in Q1 2025. Credit: Sinta

Applying premiumization strategy, Xiaomi gains 64.5% net profit jump in Q1 2025

May 31, 2025
Kaspersky appointed Defi Nofitra as first country manager for Indonesia. Credit: Kaspersky

Kaspersky appoints Defi Nofitra as first country manager for Indonesia

May 31, 2025
  • 32321

    New tech layoff chapter, Microsoft lays off thousands of its cloud unit ‘Azure’

    1 shares
    Share 0 Tweet 0
  • Nokia rolls out 6600 5G Ultra

    0 shares
    Share 0 Tweet 0
  • Performing a second layoff round, Morgan Stanley to reduce 3,000 workforces in Q2 2023

    1 shares
    Share 0 Tweet 0
  • TikTok Shop to reach a US$15 billion in its GMV transactions

    1 shares
    Share 0 Tweet 0
  • International Women’s Day – Opportunity for Businesses to Support Women in the Workplace

    0 shares
    Share 0 Tweet 0
the 10th world battery & energy industry expo 2025World Ai Jakarta 2025
Heaptalk business news logo

We Build an Ecosystem by Sharing Business News, Headlines and Expert Talks in Professional Perspective and Positive Point of View. Latest business news media headlines platform today.

Recent Posts

  • Paving the Way for Expatriate Homeownership: Savyavasa and Permata Bank Launch Exclusive Foreign Mortgage Program
  • Equinix completes KL1 Phase 2 data center in Kuala Lumpur
  • Soemitro Center: A platform for Indonesia’s young economists
  • Unicharm research: Lifree improves quality of life for elderly
  • Applying premiumization strategy, Xiaomi gains 64.5% net profit jump in Q1 2025

Follow Us

Facebook
Twitter
LinkedIn Youtube Instagram RSS

Newsletter

  • About Us
  • Editorial
  • Newsletter
  • Contact
  • Privacy Policy
  • Cyber Media Guidelines
  • Disclaimer
  • SOP Perlindungan Wartawan

Welcome Back!

Login to your account below

Forgotten Password? Sign Up

Create New Account!

Fill the forms below to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In
We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. By clicking “Accept”, you consent to the use of ALL the cookies.
Do not sell my personal information.
Cookie settingsACCEPT
Privacy & Cookies Policy

Privacy Overview

This website uses cookies to improve your experience while you navigate through the website. Out of these cookies, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may have an effect on your browsing experience.
Necessary
Always Enabled
Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information.
Non-necessary
Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. It is mandatory to procure user consent prior to running these cookies on your website.
SAVE & ACCEPT
No Result
View All Result
  • Home
  • News
  • Technology
  • Industry
  • GovAct
  • Events
  • Whats on
  • Expert Talk
  • Insight
  • Sustainability
  • Newsletter
  • Press Releases
  • Login
  • Sign Up

© 2024 Heaptalk.com