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.