The Amazing Rise of Medco Energi

The Belanak FPSO

This year, Medco Energi is celebrating its forty years of continuing successes and presence as one of the leading energy companies in Indonesia and South East Asia.

Medco Energi International became a public company in 1994, and today it operates in eight countries.

It has interests in oil and gas exploration and production, geothermal power generation, gas distribution and trading, and mining.

The Beginning of Medco

Medco Energi has come a long way in a short time since it started as an oil drilling service company in 1980, Meta Epsi Pribumi Drilling Company (MEDCO).

Founded by Mr. Arifin Panigoro, Medco Energi is a trailblazer ever since its beginning.

The Acquisition of Stanvac Indonesia

The first breaks that made Medco became big and successful were the acquisition of Stanvac’s oil and gas assets in South Sumatera in 1995, and the following discovery of the big oil fields in Kaji and Semoga in the Rimau Block, in South Sumatera.

Stanvac Indonesia, set up by Standard Oil of New Jersey in 1912, was one of the oldest and biggest oil companies in Indonesia during the Dutch colonial era.  

The Acquisition of ConocoPhillip’s Interest in West Natuna Sea Block B PSC

The Acquisition of ConocoPhillip’s Interest in West Natuna Sea Block B

Medco Energi further expanded in 2016 when it purchased ConocoPhillips’s 40% interest in the West Natuna Sea Block B and took over the operatorship of the block.

This acquisition added substantial gas and liquids reserves and increased Medco Energi’s daily production by over 35%.

The block is in approximately 300 feet of water and had 11 offshore platforms, four producing subsea fields, and one FPSO – the Belanak FPSO – in addition to two dedicated floating storage and offloading vessels.

The Belanak FPSO was described as one of the most complex FPSO in the world. It was the first offshore liquefied petroleum gas (LPG) facility on a floating vessel in the Asia Pacific region when it was commissioned in 2004.

The fields include the Belanak field, South Belut field, Hiu field, Kerisi field, North Belut field and Bawal field.

The produced natural gas is sold to Singapore and Malaysia through a 654 KM long 28 inch gas pipeline.

Medco Energi also assumed the operatorship of the Onshore Receiving Facility in Singapore following the acquisition.

Acquisition of Ophir Energy

Medco Energi Internasional continued to expand by acquiring Ophir Energy, a London-based independent in 2019.

The acquisition of Ophir Energy increased Medco Energi’s daily oil and gas production by 29% to 110,000 BOE per day.

By taking over the operatorship of Ophir Energy’s offshore Bualuang field in Thailand, Medco Energi became a leading regional oil and gas player in South East Asia.

Epilogue

Besides acquiring producing assets, Medco Energi is also active in exploring for new oil and gas reserves.

Its 2020 exploration drilling campaign in the South Natuna Sea Block B is 100% successful. It tested hydrocarbon in all the four exploration wells it drilled. The wells are Bronang-2, Kaci-2, Terubuk-5, and West Belut-1.

Medco Energi is planning to develop these fields.

As Medco Energi celebrates its 40 years of progress, with its solid management team, it certainly will continue to march toward an even brighter future.

Here is the top management team of Medco Energi.

Muhammad Lutfi – President Commissioner

Hilmi Panigoro – President Director

Roberto Lorato – Chief Executive Officer

Anthony R Mathias – Chief Financial Officer

Ronald Gunawan – Chief Operating Officer

Amri Siahaan – Chief Human Capital and Business Support Officer

Myrta Sri Utami – VP Corporate Planning & IR

Siendy K Wisandana – Head of Legal Counsel and Secretary

Written by Jamin Djuang – Chief Learning Officer of LDI Training and author of the published book The Story of Oil and Gas: How Oil and Gas are Explored, Drilled and Produced.

10 Interesting Facts About The Super-Giant Oil Field of Attaka

Attaka platform - 22051165_10203849223866343_116962473911316990_o
Attaka central platforms from left to right: Wellhead platform, Central Processing Platform, Compression Platform, and Quarter Platform

Attaka field, a giant offshore oil field located 12 miles from the shore of East Kalimantan in Indonesia was discovered by Union Oil of California (UNOCAL) in August 1970. Attaka field is considered a giant oil field having 1023 MMBOE of recoverable reserves.

General Soeharto, the president of Indonesia at that time, inaugurated the Attaka field and the Santan terminal on 22 January 1973.

Santan terminal is the onshore complex where the crude oil from the Attaka field is processed and stored before it is exported by oil tankers. Santan terminal is also where the produced gas is processed before it is sent to Badak LNG for liquefaction.

Unocal along with its 50-50 partner, Inpex, operated the Attaka field until it was acquired by Chevron.  Pertamina Hulu Kalimantan Timur assumed the operatorship of the field beginning on 25 October 2018.

Here are the interesting facts about the Attaka unit:

  1. Two years after its discovery, the Attaka field started producing oil in November 1972, making it the first offshore field in Indonesia.
  2. It has 10 platforms, 6 of which are remote wellhead platforms producing oil and gas from 109 wells.
  3. Five subsea wells were completed in 1981-1984 to produce the oil accumulation in areas out of reach of the existing remote platforms. These are the first subsea completions in Indonesia and in Asia.
  4. Following the first discovery well, the Attaka Well 1A, seven appraisal wells were drilled to assess to size and potential of the hydrocarbon accumulation.
  5. The huge Attaka reservoir, formed in the very prolific Kutei basin, is a faulted anticline. It has an areal closure of 8000 acres. Attaka field is one of five super-giant fields discovered in the Kutei basin.
  6. Its oil reserves are attributed to oil found in 22 separate sands at a depth between 2800 feet and 7600 feet.
  7. Attaka sands have very high permeability. It is as high as 5 Darcy in some wells.
  8. Attaka field daily oil production was 110,000 BOPD at its peak and gas production was 150 MMSCFPD.
  9. A significant milestone was reached when cumulative oil production of 600 million barrels was recorded at 6:42 PM on March 7, 2001. Cumulative gas production in that same year was 1.3 trillion SCF.
  10. Attaka field has more than 50 sands with variable oil reserves. Reservoir sand thickness ranges from 5 to 100 feet. To produce them economically, multiple zone completion method using dual tubing strings and multiple packers was selected. This method allows the engineers the flexibility to select from which of the 2 to 4 perforated zones in each well they would like to produce from.

Jamin Djuang