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Medco Group.



Backgrounds

Group Medco started business as an onshore oil and gas drilling contractor. Meta Epsi Pribumi Drilling Co. (Medco) was established by Arifin Panigoro in 1980. Currently Medco has 14 oil and gas blocks and 16 offshore rigs in Sumatra, Kalimantan, Sulawesi, Java and Papua. Medco also has oil fields This list of oil fields includes major fields of the past and present. The list is incomplete; there are more than 40,000 oil and gas fields of all sizes in the world[1].  abroad such as in America, Australia, the Netherlands and Middle East.

The surge in the oil prices boosted Medco and became more aggressive in expanding business in the oil sector. Late January, 2007, Medco found new oil field in Oman with a production capacity of 18,000 barrels a day. Medco plans to expand its production capacity from oil field in Libya to start producing by the end of 2007.

By the end of 2006, Medco acquired Novus, an oil company in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area.  having a production capacity of 20 million cubic feet of gas and 500 barrels of oil a day.The Medco Group's total production capacity now is 60,000 barrels of crude oil and 150 million cubic feet of gas a day in the country.

Recently the Medco Group through PT. Medco Power agreed to team up with PLN PLN

In currencies, this is the abbreviation for the Polish Zloty.

Notes:
The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion.
 to build a 100 megawatt meg·a·watt  
n. Abbr. MW
One million watts.



mega·watt
 gas fired power plant (PLTG) 100 in Nanggroe Aceh Darussalam (NAD NAD: see coenzyme. ) with an investment of US$ 100 million or around Rp 900 billion. The PLTG will have gas supply from the A Block to be developed by PT Medco E&P, another subsidiary, at an estimated cost of US$ 600 million. The A Block in Lhokseumawe, construction of which to start next year is expected to produce gas only in 2010.

The Medco Group also plans to build an ethanol factory to produce cassava cassava (kəsä`və) or manioc (măn`ēŏk), name for many species of the genus Manihot of the family Euphorbiaceae (spurge family).  based biofuel bi·o·fuel  
n.
Fuel such as methane produced from renewable resources, especially plant biomass and treated municipal and industrial wastes.



bi
. The company will grow cassava over hundreds of hectares of land in Kota Bumi, North Lampung with an investment of US$ 34.13 million. The factory will produce 180 kiloliters of ethanol a day. Medco will cooperate with local farmers to guarantee supply of basic material. The factory to start operation by the end of 2007.

Demand for biofuel is growing and the prospect is encouraging for business in biofuel. In the United States, transport oil fuel is required to have a 5% content of biofuel. In Brazil the required content is 20%.

Recently Medco offered to sell its 51.3% stake in oil drilling subsidiary PT Apexindo Pratama Duta Tbk Medco has named Credit Suisse The Credit Suisse Group (SWX:CSGN, NYSE: CS) is a financial services company, headquartered in Zürich, Switzerland. It is the second-largest Swiss bank, behind UBS AG.  as its financial advisor in the planned divestment. It said it wants to use the fund from the share sale to finance business expansion in the upstream sector of oil and gas sector.

Currently the Medco Group has grown to become widely diversified corporation with stakes not only in the oil and gas sector but also in various other sectors such as banking, agribusiness, food processing Food processing is the set of methods and techniques used to transform raw ingredients into food for consumption by humans or animals. The food processing industry utilises these processes.  and manufacturing sector.

Energy the core business

PT. Meta Epsi Engineering was founded in 1975 by Arifin Panigoro and a number of fellow alumnus ALUMNUS, civil law. A child which one has nursed; a foster child. Dig. 40, 2, 14.  from the Bandung Institute of Technology to operate in oil and gas service.

PT. Medco Energi Corp. operated in oil and gas exploration and production with a daily production capacity of 60,900 barrels of crude oil. It signed a Rp 1 trillion contract to supply 15,000 barrels of oil to Mitsui Corp. of in 2000. Medco has met its domestic market obligation (DMO DMO Debt Management Office (Bank of England)
DMO Destination Marketing Organization
DMO Defence Materiel Organisation (Australia)
DMO Dental Maintenance Organization
DMO Distributed Mission Operations
) under which it is required to set aside 25% of its total production for Pertamina to be processed into domestic fuels.

PT. Medco Antareja and PT. Apexindo Pratama Duta operate in drilling service. PT. Medco Antareja operates 12 units of onshore rigs with capacity ranging from 600 HP to 2,000 HP. PT. Apexindo Pratama Duta has three offshore rigs. Apexindo cooperates with a number of large oil companies such as Total Indonesie in East Kalimantan East Kalimantan (Indonesian: Kalimantan Timur abbrv. Kaltim) is Indonesian province on the east of Borneo island. The resource-rich province has two major cities, Samarinda (the capital and a center for timber product) and Balikpapan (a petroleum center with oil , Total Sirri in Dubai, Middle East and ELF in Brunei Darussalam.

PT. Exspan Kalimantan and PT. Exspan Tarakan, which was established in 1990 took over a oil and gas field from Tesoro Company of USA in Sanga-Sanga, Samboja and Tarakan oilfield in East Kalimantan Timur. PT. Exspan Kalimantan has oil reserve of 11.15 MMBO MMBO Million Barrels of Oil  and gas reserve of 87.68 BCF BCF Billion Cubic Feet
BCF Bioconcentration Factor
BCF British Chess Federation
BCF British Coatings Federation
BCF Breast Cancer Fund
BCF Bank Credit Facility
BCF Bulked Continuous Filament
BCF British Cycling Federation
BCF Boeing Converted Freighter
 with oil output of 5,800 BOPD BOPD Barrels of Oil Per Day
BOPD Bataan Ocean Petroleum Depot
.

PT. Exspan Sumatra has taken over an oil field from Stanvac of USA in South Sumatra South Sumatra or Sumatera Selatan is a province of Indonesia. It is on the island of Sumatra, and borders the provinces of Lampung to the south, Bengkulu to the west, and Jambi to the north.  at a price of US$ 88 million. The oil field has a reserve of 170.03 MMBO and gas reserve of 82.13 BCF with production of 35,500 BOPD. The company found a new oil field in Kaji and Semoga, South Sumatra, which has an oil reserve of 350 million barrels. The company has five subsidiaries operating in oil explorations including Exspan Pasemah Inc, Exspan Airsenda Inc., Exspan Airlimau Inc, Exspan Eploration & Production Inc,.Exspan Myanmar Inc., Exspan Cumi-Cumi Inc.

PT. Exspan Pasemah in 2000 teamed u with Petronas Carigali Overseas Sdn, Bhd, of Malaysia to drill three oil wells in Pasemah, South Sumatra over 8,560 km2 with an investment of US$ 6 million for a long term contract to end in 2023. The Pasemah block was acquired at a price of US$ 11.4 million from a joint venture of Esso and Mobil Oil of the United States.

PT. Medco Methanol Bunyu signed in 1997 a 20-year contract to operate methanol factory of Pertamina on the island of Bunyu, East Kalimantan, with a capacity of 285,383 metric tons a year.

The Medco Group went international for the first time through Expans Myamnar Inc which held two PSC (Public Service Commission) Same as PUC.  (Production Sharing Contrator) licenses for onshore operation in Myanmar with a concession of 2,517 sq.m. and with an estimated oil reserve of 13 MMBO and gas reserve of 315 BCF.

PT Medco International Petroleum Ltd. has established cooperation with Kuwait Energy Company KSCC KSCC Kansas State Conservation Commission  (KEC KEC Kootenai Electric Cooperative
KEC Kongu Engineering College (Tamilnadu, India)
KEC Kentucky Exposition Center (Louisville, Kentucky)
KEC Krupajal Engineering College (India) 
) and HL Petroleum Ltd (JHL JHL Journal of Human Lactation
JHL J Hvidtved Larsen A/S (sewer cleaning tankers manufacturer)
JHL Jabr Ibn Hayan Laboratories (Iran) 
) to operate in oil and gas explorations in Cambodia. In 2007 Medco, which was the operator under the cooperation sold a 21.25% stake in the Cambodia block to Lundin Cambodia BV.

PT Medco Energi Internasional Tbk through PT Medco E&P Indonesia will pay US$ 248 million or around Rp 4.32 trillion for the development of the A Block in he regency of East Aceh, Nanggroe Aceh Darussalam (NAD).

The cost of developing the A Block has increased from an earlier estimate of US$ 450 million to around US$ 600 million as a result of an increase in the prices of production equipment. Medco has a production split of 49% and the government 51% from the A Block, which is expected to start producing gas in 2010.

In 2010, the A Block is expected to have a capacity to turn out 125 million cubic feet of gas a day (mile-mile standard cubic feet per day/mmscfd) and 10 mmscfd of which will be supplied to the state-owned fertilizer factory PT Pupuk Iskandar Muda Iskandar Muda (1583?[1] - December 27 1636[2]) was the twelfth sultan of Aceh, under whom the sultanate achieved its greatest territorial extent, and was the strongest power and wealthiest state in the western Indonesian archipelago and the Strait of Malacca.  (PIM (1) (Protocol Independent Multicast) A multicast routing protocol endorsed by the IETF. Used in conjunction with an existing unicast routing protocol, it comes in two flavors: Dense Mode (PIM-DM) is used when recipients in the target group are in a concentrated ) and 15 mmscfd to state-owned electricity company PT. PLN.

Medco Energi Internasional Tbk is tightly competing against Kuwait Energy Company (KEC) for a 49% stake in Somalia Petroleum Corporation (SPG SPG - System Program Generator. A compiler-writing language.

["A System Program Generator", D. Morris et al, Computer J 13(3) (1970)].
). Somalia Petroleum is an oil and gas comoany in Somalia, eastern Africa. Medco already spent US$ 1 million for law consulting service Noun 1. consulting service - service provided by a professional advisor (e.g., a lawyer or doctor or CPA etc.)
service - work done by one person or group that benefits another; "budget separately for goods and services"
 in Somalia. Somalia is a new target in Medco's expansion abroad after acquiring oil and gas stakes in the United States, Libya, Oman and Cambodia.

Pipe industry

Medco has a number of subsidiaries in the manufacturing sector to support its oil and gas ventures. The subsidiaries include PT. Kujang Europipe Indonesia operating in steel pipe industry and PT Multi Fibrindo Gemilang.

PT. Multi Fabrindo Gemilang produces 200,000 tons of spheric tanks, 1,000 tons of mooring buoys, 500 tons of process piping, 360 units of pressure vessels, 30,000 tons of bridges and 16,000 tons of tower a year.

Hotel & property

It also has subsidiaries operating in the hotel and property sector. The Medco Group has a number of hotel chains including Imperial Hotel, in Bali under PT. Satria Balitama; Novotel Hotel in Bukit Tinggi Places called Bukit Tinggi (Malay and Indonesian for high hill) are:
  • Bukittinggi, West Sumatra, Indonesia
  • Bandar Bukit Tinggi, Klang, Malaysia
  • Bukit Tinggi, Pahang, Malaysia
, West Sumatra West Sumatra (Indonesian: Sumatera Barat, abbreviated to Sumbar) is a province of Indonesia. It lies on the west coast of the island Sumatra, and borders the provinces of North Sumatra (Sumatera Utara) to the north, Riau and Jambi to the east, and  Barat under PT. Grahamas Citrawisata; Grand Preanger Hotel, Bandung under PT. Bina Inti Dinamika ; PT. Meta Maskana, which builds the Jeruk Purut Town House.

Agribusiness

PT. Ciptani Kurnia Sejahtera, PT. Waringin Agromitra dan PT. Metatani Mandang Sejahtera have oil palm plantations totaling 25,000 hectares in Central Kalimantan Central Kalimantan (Indonesian: Kalimantan Tengah often abbreviated to Kalteng) is a province of Indonesia, one of four in Kalimantan - the Indonesian part of the island of Borneo. Its provincial capital is Palangkaraya.

The province has a population of 1.
 and 40,000 hectares in Natuna islands The Natuna Islands archipelago (272 islands) is located in the Natuna Sea. The islands are officially part of the Riau Islands province of Indonesia and it is the northernmost non-disputed island groups of Indonesia.  under PT. Meta Epsi Agro.

Food processing industry

PT. Sentralfood Indonusa Corp. has an instant noodle factory with a capacity of 140,000 tons a year with an investment of Rp 40 billion.

The factory produce instant noodle with the brands of Salami and Cintamie. It has a 5% share of instant noodle market in the country.

With two production lines, PT Sentrafood produces at least 300,000 cartons or 12 million packs of instant noodle a month. It instant noodle products with different flavors including soup-based Salam Mie Kari Melayu, and dry based Salam Mie Goreng Jawa and Salam Mie Goreng Abon.

Conclusion

The Medco Group under Arifin Panigoro and his younger brother Hilmi Panigoro is the largest private energy company in the country. It has expanded operation abroad. It foreign operations contribute 20% to its income to be increased to 40% in the next three years.

Medco succeeded in keeping production cost at relatively low level of only US$ 5 per barrels as against around US$ 9-US$ 10 a barrel by other oil companies.

Most oil companies continue exploitation until the wells is almost entirely depleted, but Medco will leave to other areas when a well is almost depleted.

Medco has expanded business to non energy sector although it has made no much progress in those non core business such as in food processing and hotel business.

Many large companies in developing nation are easily tempted to expand operations to non core business facing greater risk.
Parent company         PT. MEDCO ENERGY INTERNATIONAL Tbk

Address                Graha Niaga, 16th Floor
                       JI. Jend. Sudirman Kav. 58
City                   Jakarta 10270
Phones                 021 2505459, 5710630 Hunting
Fax(s)                 2,125,055,365,710,620
E-mail                 medc@medcoenerg.com
Website                http://www.medcoenere.com

                       MEDCO GROUP
Adress                 Medco Building III, 3rd Floor
                       JI. Ampera Ra a No. 20
                       Jakarta 12560
Phone                  (021) 7821671
Fax                    (021) 7821771
E-mail                 medcorp@medcogroup.co.id

Number of companies    72 Companies
Lines of business      -Mining:
                       Oil &gas exploration and exploitation
                       -Industry:
                       Steel fabricating industry, petrochemical
                       industry, food industry
                       -Finance:
                       Banking, venture capital, investment holding
                       -Property:
                       Hotel development
                       -Infrastructure:
                       Electricity
                       -Communication:
                       Telecommunication operator
                       -Agriculture:
                       Palm oil plantation
                       -Services:
+                      Oil & gas drilling services, general contracting
Estimated sales        1997--Rp 1,500 billion
turnover               1998--Rp 2,086 billion
                       1999--Rp 1,876 billion
Chairman               --Mr. Arifin Panigoro
Other key persons      --Mr. John Sadrak Karamo
                       --Mr. Hilmi Panigoro
                       --Mr. Hertriono Kartowisastro

List of the group
members

Main members           -ANTAREJA HERTRINDO KHARISMA, PT
                       (Investment holding)
                       -BINAUSAHA JASA MANDIRI, PT
                       (Investment holding)
                       -BINAUSAHA JASA TRIPUTRA, PT
                       (Investment holding)
                       -MEDCO ANTAREJA, PT
                       (Oil & gas drilling services)
                       -META ENERGI PETRASANGA, PT
                       (Oil and gas drilling services)
                       -META EPSI ENGINEERING, PT
                       Engineering contracting)
                       -MULTI FABRINDO GEMILANG, PT
                       (Steel fabricating and steel structure for oil
                       & gas drilling)
                       -META EPSI PRIBUMI DRILLING COY., PT
                       (Oil & gas drilling services)
                       -MEDCO ENERGI CORP., PT
                       Holding company, oil and gas services
                       -EXSPAN SUMATERA, PT
                       (Oil & gas exploration and exploitation)
                       -MEDCO METHANOL BUNYU, PT
                       Methanol industry)
                       -KUJANG EURAPIPE INDONESIA, PT
                       Steel pipe industry)
                       -SATRIA BALITAMA, PT
                       Hotel development
                       -BINA INTI DINAMIKA, PT
                       Hotel development
                       -APEXINDO PRATAMA DUTA, PT
                       Oil & gas drilling services
                       -CENTRAL ASIA PETROLEUM LTD., PT
                       KAZAKHSTAN Oil exploration & exploitation
                       -DRAGON OIL PLC., UNITED KINGDOM
                       Oil exploitation
Other members          MANUFACTURING:
                       -SEMEN GOMBONG, PT
                       (Cement industry)
                       -SENTRAFOOD INDONESA CORP., PT
                       (Instant noodle industry)
                       -MITRA PUTRA BANGUN, PT
                       (Industry)
                       -PUSRI MEDCO, PT
                       Fertilizer industry)
                       -PAUWELS TRAFO ASIA, PT
                       (Transformer industry)
                       PROPERTY:
                       -GRAHAMAS CITRA WISATA, PT
                       (Hotel development)
                       -GRIYA PANCA KARTIKA, PT
                       (Hotel development)
                       -INTIGRAHA PRASETYA, PT
                       (Property)
                       -INTI PERSADA MULTIGRAHA, PT
                       (Property)
                       -META ARCHIPELAGO HOTELS, PT
                       (Hotelry development)
                       -META GRAHA CIPTA, PT
                       (Housing development)
                       -META EPSI SARANA GRAHA, PT
                       (Property)
                       -GRAHA NIAGA TATA UTAMA, PT
                       (Property)
                       -META REKSA ADIWISATA, PT
                       (Golf course & resort development)
                       -META MESKANA, PT
                       (Housing development)
                       FINANCE:
                       -BANK HS 1906, PT
                       (Banking)
                       -MEDCO CENTRAL ASIA LTD
                       (Finance services)
                       -MEDCO ENERGI FINANCE OVERSEAS BV,
                       (AMSTERDAM) (Finance services)
                       -MEDCO DUTA, PT
                       (Investment holding)
                       -MEDCO INTI DINAMIKA, PT
                       (Investment holding))
                       -SARANA JABAR VENTURA, PT
                       (Venture capital)
                       AGRICULTURE:
                       --CIPTATANI KUMAI SEJAHTERA, PT
                       Plantation
                       -META EPSI AGRO, PT Plantation
                       -METATANI NATUNA, PT Plantation
                       -WARINGIN AGROMITRA, PT
                       (Agricultural)
                       -METATANI MANDANG SEJAHTERA, PT
                       (Agricultural)
                       MINING:
                       -EXSPAN KALIMANTAN, PT
                       (Oil & gas exploration and exploitation)
                       -EXSPAN AIRSENDA INC., PT
                       -EXSPAN AIRLIMAU INC., PT
                       -EXSPAN PASEMAH INC., PT
                       -EXSPAN EXPLORATION & PRODUCTION INC, PT
                       -EXSPAN TARAKAN INC., PT
                       -EXSPAN PETROGAS INTRANUSA, PT
                       -EXSPAN CUMI--CUMI, PT
                       -EXSPAN ENERGI NUSANTARA, PT
                       COMMUNICATION:
                       -NUSA TELEKOMINDO INDONESIA, PT
                       TRADING:
                       -DUTATECH PERSADA, PT
                       -EU RAM EGA N IAGASARANA, PT
                       -HERTECH KHARISMA, PT
                       SERVICES:
                       -HITEX NUSANTARA OFFSHORE DRILLING, PT
                       (Oil & gas drilling services)
                       -SCLUMBERGER GEOGRAPHICS NUSANTARA, PT
                       (Oil & gas drilling services)
                       -EKSITA PANTRANAGIRI, PT
                       (Oil & gas drilling services)
                       -ETAKSATRIA PETRASANGA, PT
                       (Oil & gas drilling services)
                       -CITRA PANJI MANUNGGAL, PT
                       (Construction services)
                       -ANDRAWINA PRAJA SARANA, PT
                       (Catering services)
                       -MESITECH MITRA PURNA BANGUN, PT
                       (Plant services & maintenance)
                       -META ENERGI PANTRANAGARI, PT
                       (Oil and as drilling services)
                       -EXSPAN PETROGAS INTRANUSA, PT
                       (Oil drilling services)
                       TOURISM & ENTERTAINMENT:
                       -META ADIBOGA, PT (Restaurant services)
                       OTHERS:
                       -ANTAREJA JASATAMA, PT
                       (Land clearing contracting)
                       -EXSPAN ENERGI NUSANTARA, PT
                       (Power electricity plant)
                       -GUARDIAN INDONESIA, PT
                       -NUANSA GRAHACIPTA, PT
                       (Investment holding)
Overseas companies     -SATELLITE OVERSEAS LTD.
affiliated with the    (Telecommunication)
group                  -EXSPAN MYANMAR INC
                       (Oil and gas exploration and production)

Source: Medco Energy Tbk

Financial Highlights
PT. Medco Energy Tbk.
                                               (in Rp million)
       Description                 2005              2006
                                (31st Dec)        (30th Sep)
ASSETS
a. Current Assets                    518.8               566.8
b. Non Current Assets              1,016.4             1.274.8
Total Assets                       1,535.2             1,841.6
LIABILITIES
a. Current Liabilities               236.7               250.9
b. Non Current Liability             669.2               932.2
c. Equity                            629.3               658.5
Total Liabilities + Equity         1,535.2             1,841.6
REVENUES
a. Total Revenue                     620.2               792.4
b. Net Profit                         74.7                38.2

Source: Financial report of Medco Energy Tbk
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Title Annotation:COMPANY PROFILE
Publication:Indonesian Commercial Newsletter
Article Type:Company overview
Geographic Code:9INDO
Date:Oct 1, 2007
Words:2347
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