Gas Pipeline & Distribution
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MedcoEnergi is committed to providing energy for society. " Our near term goal is to double the current production rate by delivering successful major projects, growing our reserves organically and inorganically, while complying with high safety, health, and environmental standards." Lukman Mahfoedz, CEO of MedcoEnergi Table Of Contents 02 Foreword from CEO 04 Journey Towards Excellence 18 Exploration and Production 30 Other Energy Related Businesses Foreword from CEO PT Medco Energi Internasional Tbk our business and achieve our goals, we have (MedcoEnergi) is a publicly-listed Indonesian acquired an enormous amount of knowledge national company with current oil and gas and surrounded ourselves with the most production of around 80 thousand barrels of talented human capital. oil equivalent per day (including 20 thousand barrels oil equivalent per day under a service MedcoEnergi is committed to providing energy contract in Oman). for society. The Company is set to double its current production rate in the near future by MedcoEnergi was founded in 1980 by Arifin delivering successful major projects, growing Panigoro, one of Indonesia's leading oil and its reserves organically and inorganically, gas businessmen, as the first private national while always complying with the highest oil and gas drilling company. safety, health and environmental standards. Within three decades, we have significantly Our aim is to maximize value for our grown our business and become an integrated stakeholders. We welcome your interest, energy company engaged in exploration involvement and support as we continue to and production (E&P), integration of gas pursue aggressively the Company's growth value chain, Liquefied Petroleum Gas (LPG) agenda. processing, high speed diesel marketing, storage and transportation, gas transportation, Sincerely yours, drilling rigs and services, electrical power generation and coal mining. Lukman Mahfoedz President Director & CEO Today, we have expanded our operation from Indonesia to Oman, Yemen, Libya, and the United States of America. In order to grow 2 Our Becoming the Energy Belief Company of Choice Our vision is to be the energy company of choice for our investors, shareholders, partners, employees, communities and the greater public. It is a vision that will be realized by developing energy resource potential into profitable investment portfolios. We operate our business in adherence to the highest standards of Good Corporate Governance (GCG) and of Safety, Health and the Environment (SHE). In addition, we implement a consistent Corporate Social Responsibility (CSR) program. In all these areas MedcoEnergi has received accolades from its stakeholders. All our work is conducted in a professional, ethical, open, and innovative way. These values are the core of our corporate culture, which drives MedcoEnergi towards sustainability. 3 Journey Towards Excellence Obtain Highest Recognition The Indonesia Vice President presented Gold PROPER award, the highest recognition for preserving the environment from the Indonesian Ministry of Environment, to the COO of E&P MedcoEnergi, Frila B. Yaman. Corporate Milestones 1980 Incorporated as an Indonesian 1996 Discovered the giant oil field, 2003 Signed Gas Supply Agreement drilling contractor. Kaji and Semoga, Rimau with PLN (state-owned power Block, South Sumatra. producer) for gas produced 1992 Established an oil and gas from South & Central Sumatra subsidiary. 1997 Entered into the downstream PSC. industry through a Joint Acquired a Technical Management Agreement to 2004 Acquired 100% shares of Assistance Contract (TAC) and operate Pertamina's methanol Novus Petroleum Ltd, marking Production Sharing Contract plant at Bunyu Island. the Company's expansion into (PSC) for two oil and gas the international oil and gas blocks in East Kalimatan from 2000 Acquired three new working arena. Tesoro. areas: Simenggaris, Western Madura and Senoro-Toili. Inaugurated the Company's 1994 Initial public offering as Discovered an oil field in Soka, first gas-fueled power plant in MedcoEnergi on the Indonesia South Sumatra. Batam Island, Panaran I. Stock Exchange. Ticker symbol is MEDC. 2002 Acquired 25% working interest in 2005 Awarded Oil & Gas Exploration Tuban block. and Production Sharing 1995 Acquired 100% shares of Agreement of Area 47 from the PT Stanvac Indonesia from Awarded a "B+" corporate credit Government of Libya. Exxon and Mobil which held rating with stable outlook by PSCs for 3 oil and gas blocks Standard & Poor's on February Acquired Langsa block and in South Sumatra: South & 4, 2002, above Indonesia's credit Sembakung block in Indonesia. Central Sumatra, Rimau, and rating. Pasemah. Signed Tanjung Jati Operation & Maintenance Agreement with PLN. 2006 Awarded ten-year E&P 2008 Signed a Production Sharing 2010 Secured operatorship and successfully Service Agreement of Karim Agreement with the Ministry made three discoveries from three Fields, in Oman. of Oil and Minerals of the exploration wells in Area 47 in Libya. Republic of Yemen for Block 82 Commissioned Panaran II and 83. Obtained 20 year extensions for three PSC gasfired power plant. working areas: South & Central Sumatra, Completed the sale of its Block A, and Bawean. Awarded 3x110 MW of drilling subsidiary, PT Apexindo geothermal power project in Pratama Duta Tbk. Approved the Final Investment Decision Sarulla, North Sumatra. for DSLNG to develop the Liquefied Signed the first Coal Natural Gas (LNG) project. Launched exploration of BedMethane (CBM) PSC in 2007 Indonesia to carry out activities Area 47 in Libya. Made six Issued the shelf-registration USD bond of in development of CBM in Musi 2011 discoveries from exploration up to USD 150 million. wells in 1 year. Banyuasin Regency, South Sumatra. Signed to CBM PSC of Lematang and Launched pilot project for Muralim Blocks. Enhanced Oil Recovery (EOR) 2009 Entered into the coal mining in Rimau Block. business by acquiring two Completed the sale of Medco Tunisia companies which hold Anaguid Limited. Began the development mining concession rights in of Senoro Gas Project by Nunukan, East Kalimantan. Invited PT Saratoga Power to become a establishing PT Donggi- shareholder of PT Medco Power Indonesia. Senoro LNG (DSLNG). Secured Commerciality declaration of Area 47, Ghadames Basin, Libya. High SHE Standard MedcoEnergi is committed to managing its MedcoEnergi has been implementing various operations safely, effectively and efficiently. initiatives to regularly enhance its SHE MedcoEnergi always ensures that all of its performance and to show appreciation for assets implement Performance Integrity of employees and contractors who implement MedcoEnergi (PRIME) as its SHE management our Behavior Based Safety program. system. PRIME was developed in accordance with the International Safety Rating System We have been conducted Health Risk 7th edition (ISRS7), the audit standard that is Assessment programs and provided specific implemented in all MedcoEnergi assets. health program for our employees to prevent any potential occupational illness. As a high standard of SHE system, the MedcoEnergi requires all of its contractors to contents of PRIME are also in line with various implement Contractor Safety Management and international standard management systems: evaluates their SHE performance during their ISO 9001 (Quality Management System), ISO service to ensure that they understand and 14001 (Environmental Management Systems), implement CSM properly and effectively. OHSAS 18001 (Occupational Health and Safety Assessment Series), PAS 55-Asset We also realize that our operational integrity Management, and GRI (Global Reporting is highly dependent on our facility integrity. Initiative). Therefore, we continuously enhance the integrity of our facilities by conducting PRIME is a guideline for MedcoEnergi to risk-based facility inspections and routine implement operation management system, inspections on our various equipment and risk management, employee competency electrical installations. management, facility integrity management, crisis management, and knowledge MedcoEnergi is determined to enhance the management. safety behavior of its employees at all times to continue delivering the best quality of operation and performance. MedcoEnergi uses Performance Integrity of MedcoEnergi (PRIME) as its SHE management system. This system was developed in accordance with ISRS7 audit standard. Preserving Environment Currently about 6.8 billion people inhabit In preserving the environment, we are the Earth. Our world is faced with serious committed to implementing various initiatives, challenges, among others: poverty, including: green house gas emission environment, and health. reduction, water conservation, waste management, utilization of resources, and MedcoEnergi is continuously trying to find biodiversity conservation. better ways to produce and use energy to drive the economy, industries, and These initiatives have enabled us to transportation. enhance our performance in preserving the environment. We are the first E&P Company MedcoEnergi has undertaken several to receive the highest recognition from initiatives to restore the ecological balance the Indonesian Ministry of Environment that is affected by its operations, including by obtaining Gold PROPER (Corporate management of water and air pollution, and Performance Rating Program) rating in 2011 hazardous solid waste materials. for our major oil producing block, Rimau, in South Sumatra. We also obtained Green We always strive