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.

The Top 10 Crude Oil Producing Companies in Indonesia in 2018

westseno
The photo showed the drilling activity at the West Seno field, the first deepwater field in Indonesia. The photo was taken by Dr. Tony Tirta.

The average crude oil production in Indonesia in 2018 is 803,000 barrels per day according to SKK Migas of Indonesia.

Here are the top ten crude oil-producing companies in Indonesia in 2018.

Chevron Pacific Indonesia – 209,000 BOPD

Chevron is the biggest oil producer in Indonesia in 2018 and has been a leading oil producer in Indonesia for more than 90 years. It started operating in Indonesia in 1924 under Standard Oil Company of California (SOCAL).

Chevron operated oilfields in Sumatera and East Kalimantan. It’s East Kalimantan assets came from the acquisition of Unocal in 2005. Chevron handed back all the assets in East Kalimantan to the Indonesia government on October 24, 2018, after 50 years of operation under Unocal and Chevron.

Currently, Chevron’s oil production comes mainly from the oil fields located in Riau, Sumatera under the Rokan Production Sharing Contract. The biggest oil field in the Rokan PSC is the Duri field which has been under steam-flood since 1985 and is one of the largest steam flood projects in the world. Minas is another giant oil field that Chevron discovered and operated in the Rokan Block.

ExxonMobil Cepu Ltd – 208,000 BOPD

ExxonMobil Cepu Ltd is the operator of the Cepu block located in Central Java and East Java. The Cepu Cooperation Contract (KKS) was signed on 17 September 2005 and will continue until 2035. ExxonMobil holds a 45% interest in the Cepu block.

ExxonMobil started exploration in 1999, and the oil from the Banyu Urip field started to flow in December 2008.

Pertamina EP – 79,000 BOPD

Pertamina EP operated 21 oil and gas fields located in various parts of Indonesia. These oilfields are managed under five asset groups based on their geographical locations.

Located in North Sumatera and some parts of South Sumatera, the Asset One oilfields include Rantau Field, Pangkalan Susu Field, Lirik Field, Jambi Field, dan Ramba Field.

Located in South Sumatera, the Asset Two oilfields include Prabumulih Field, Pendopo Field, Limau Field dan Adera Field.

Located in West Jawa, the oilfields included in Asset Three are Subang Field, Jatibarang Field dan Tambun Field.

Located in Central and East Jawa, the Asset Four oilfields include Cepu Field, Poleng Field dan Matindok Field.

Located in the eastern part of Indonesia, the oilfields in Asset Five are Sangatta Field, Bunyu Field, Tanjung Field, Sangasanga Field, Tarakan Field dan Papua Field.

Pertamina Hulu Mahakam – 42,000 BOPD

Pertamina Hulu Mahakam became the operator of the oil and gas fields located in the Mahakam Block on 1 January 2018. The fields were previously discovered and operated by Total along with Inpex as its partner. They acquired the block in 1966.

Several giant oil and gas fields are located in this block such as the Handil field, the Tunu field, and the Peciko field.

Pertamina Hulu Energi OSES (Offshore South East Sumatera) – 30,000 BOPD

Pertamina Hulu Energi OSES became the operator of the oil fields in Block South East Sumatera on September 6, 2018. The fields were previously operated by CNOOC, China National Offshore Oil Company.

Pertamina Hulu Energi ONWJ – 29,000 BOPD

Pertamina Hulu Energi ONWJ (PHE ONWJ) is currently the operator of the  Offshore North West Java (ONWJ) production sharing contract following the change of company ownership from BP to Pertamina in July 2009.

The contract area, located in the Java Sea, covers an area of approximately 8,300 square kilometers – stretching from the North of Cirebon to Kepulauan Seribu.

The giant Ardjuna field is located in this Production Sharing Contract area. It was discovered by ARCO – Atlantic Richfield Company –  in 1969 and operated by ARCO until BP – British Petroleum – acquired ARCO in 2000.

The production facilities consist of 670 wells, 170 shallow water platforms, 40 processing and service facilities and some 1,600 kilometers of sub-sea pipeline.

Medco EP Natuna – 16,000 BOPD

Medco EP Natuna, a subsidiary of Medco Energi, is the operator of the South Natuna Sea Block B. The field was initially operated by ConocoPhillips until Medco Energi acquired it in 2016.

Besides producing oil, Medco EP Natuna also supplies gas to Singapore using a 656 KM long 28” subsea pipeline.

Petronas Carigali (Ketapang) – 15,000 BOPD

Petronas Carigali Ketapang operates the Bukit Tua Field located in the Ketapang Block in East Java. Bukit Tua is an oil field but with a significant amount of associated gas. The offshore field is situated at a water depth of about 57 m.

The production facilities consist of wellhead platforms, an FPSO – Floating Production, Storage and Offloading – and onshore receiving facilities (ORF) in Gresik.

PetroChina International Jabung – 14,000 BOPD

PetroChina International Jabung operates the prolific Jabung Block located in Jambi in Central Sumatera.

The company produces crude oil, condensate, LPG and gas. PetroChina supplies gas to Singapore using a 450 KM long subsea pipeline.

An interesting aspect of the block is that PetroChina discovered the fractured basement rock contains a significant quantity of gas that can flow at significant rates.

Pertamina Hulu Kalimantan Timur – 13,000 BOPD

Pertamina Hulu Kalimantan Timur operates the East Kalimantan-Attaka Work Area. Chevron was the previous operator of the work area until it handed over the operatorship to Pertamina on October 25, 2018.

Attaka, the famous giant oil field is located in this block. The Attaka field was discovered and operated by Unocal until Chevron acquired it in 2005.

The oil fields in this work area are in the late declining phase. Around one billion barrels of oil and 3 TCF of gas have been produced from this work area.

This article was written by Jamin Djuang, a published author of “The Story of Oil and Gas: How Oil and Gas Are Explored, Drilled and Produced” for readers who have not seen an oil field.