Wednesday, June 24, 2009

Oil and Mining Updates from Indonesia

- Medco To Pay US$50m In Dividends
- Indonesian Oil Co Medco To Pay Dividend Of $0.015 Per Share
- Pertamina to shut Cilacap refinery platformer unit
- Exxon Fails To Strike Oil In 1st Well Off Indonesian Coast
- Indonesia's Cepu Block To Start Production Late August
- Indonesian Govt Offering Four Oil, Gas Blocks In Se Sulawesi
- Indonesian Geothermal Power Plant Project May Be Shelved
- Indonesian Govt Approves PLN's Business Margin For 2010
(Courtesy Joyo News Service)

The Jakarta Post
Wednesday, June 24, 2009
Medco To Pay US$50m In Dividends
JAKARTA: Oil and gas company PT Medco Energi has announced it
will pay shareholders dividends of US$50 million in total or 1.5
cents per share from the company's 2008 net profits.
"The dividends will be paid to each shareholder on Aug. 21,
2009," Medco president director Darmoyo Doyoatmojo told
reporters Tuesday afternoon.
Medco booked net profits of $280.20 million last year, a hefty
increase from $6.60 million in 2007. - JP
Indonesian Oil Co Medco To Pay Dividend Of $0.015 Per Share
JAKARTA, June 23 Asia pulse - PT Medco Energi Internasional
(JSX:MEDC), Indonesia`s largest publicly-listed oil and gas
company, said shareholders agreed at a general meeting Tuesday
to allocate US$50 million of last year`s net profit as dividends
or US$0.015 a share.
The dividends accounted for 17.8 per cent of 2008 net profit
worth US$280.2 million, the president director, Darmoyo
Doyoatmodjo said.
The rest would be allocated as retained earning, working capital
and investment, he said.
Medco posted a net profit of US$7.5 million in the first quarter
of 2009, a 67 per cent drop from the same period a year earlier.
Pertamina to shut Cilacap refinery platformer unit
JAKARTA, June 24 (Reuters) - Indonesian state oil and gas firm
Pertamina plans to shut a platformer unit at its Cilacap
refinery for two weeks of maintenance around August, processing
director Rukmi Hadihartini said on Wednesday.
"This is for routine maintenance to change the catalyst,"
Hadihartini told reporters.
Cilacap has two platformer units to process naphtha into high
octane gasoline -- with capacities of 8,000 and 20,000 barrels
per day. (Click on [ID:nJAK488550] for refinery details)
Hadihartini did not specify which platformer unit would be shut
for maintenance at Cilacap, Indonesia's biggest refinery located
in Central Java province.
(Reporting by Muklis Ali; Writing by Ed Davies)
Exxon Fails To Strike Oil In 1st Well Off Indonesian Coast
JAKARTA, June 24 Asia Pulse - ExxonMobil will continue
exploration despite failure to strike oil in the first
exploration well in the Surumanu block off Indonesia's Central
Sulawesi, an official said.
Exxon is yet to carry out deep sea explorations in two other
wells in the block based on its contract until 2010, Achmad
Lutfi, a deputy at the Upstream Oil and Gas Executive Agency (BP
Migas) said.
Lutfi said the US company may not claim cost recovery in the
failed exploration, which cost it around US$70 million.
Exxon still has enough time until 2010 to proceed with
explorations in the two other wells, he was quoted as saying by
the newspaper Bisnis Indonesia.
Indonesia's Cepu Block To Start Production Late August
JAKARTA, June 24 Asia pulse - The Indonesian Upstream Oil and
Gas Executive Agency (BP Migas) has predicted that Banyu Urip
oil field in the Cepu block in Bojonegoro district, East Java,
will start production as early as late August 2009.
The construction of a 32-km pipeline from Palang to the crude
oil collecting facility owned by Petrochina (SSE:601857,
SEHK:0857) at Mudi had been completed, BP Migas Deputy Chief
Abdul Muin said here on Monday.
"The construction of the problematic pipeline has been
completed," he said.
Muin said the agency was now waiting for the completion of a
mini refinery owned by PT Tri Wahana Universal (TWU) with a
capacity of 6,000 barrels per day.
The construction of the refinery had yet to be completed as the
contractor still had to wait for equipment from the United
States, he said.
"The refinery equipment is likely to arrive in the third or
fourth week of July. The equipment will later undergo a two-week
commissioning test. So it will start production only at the end
of August," he said.
The start of the oil field`s production estimated at 20,000
barrels per day (bpd) has been several times delayed as some
parts of the project are behind schedule.
Earlier, the government has targeted that the oil field would
start production late last year.
The Cepu block is expected to see its peak production of 165,000
bpd in 2012 or 2013.
Because of the delay in the start of the oil field`s production
since January 2009, BP Migas had lost a potential revenue of
US$150 million, Muin said.
Three factors had caused the delay, including slow land
clearance and a natural disaster in Houston, the United States.
The House of Representatives Commission VII overseeing energy
and mineral resources, research and technology and the
environment has set up a team to address the matter.
Indonesian Govt Offering Four Oil, Gas Blocks In Se Sulawesi
KENDARI, Indonesia, June 24 Asia Pulse - The Indonesian
government is offering investors development of four oil and gas
field blocks in South East Sulawesi (Sultra), an oil and gas
official said.
Head of Sultra`s Energy and Mineral Resources Service for oil,
gas, electricity and energy affairs Andi Aziz said here on
Tuesday that the central and regional governments had held
consultations with regard to the plan to offer the oil and gas
blocks to investors.
He said that based on the law, natural resources would be
offered for exploitations to a corporate body after the energy
and mineral resources minister held a consultation meeting with
the regional government.
"We have held consultations with the Ministry of Energy and
Mineral Resources (ESDM) the results of which included a
decision to offer the four oil blocks in Sultra to investors,"
Andi Aziz said.
The oil field blocks being offered are the Bone Bay I block in
Kolaka and North Kolaka districts, Boney Bay II in Kabaena
Island of Bombana district, Bone Bay IV in Buton district and
Menui block in the border area between Sultra and Central
Andi Aziz said that the four blocks were predicted to have large
natural oil potential but the production capacity could only be
known after explorations already carried out.
He said that no investors had yet to submit a formal application
for the explorations of the potentials.
Earlier the government has also offered two oil blocks in
Sultra, namely Buton I block and Buton II block. A Japanese
company has secured a license to explore Buton I block, while PT
Putindo Bintek has obtained the license to explore Buton II
Aziz predicted that the oil and gas potentials of the blocks
would be known in the coming five years after the explorations
had been conducted.
Indonesian Geothermal Power Plant Project May Be Shelved
JAKARTA, June 24 Asia Pulse - A geothermal power project in
North Tapanuli to be built by PT Medco Power Indonesia may be
shelved or cancelled over a price disagreement.
PT Medco Power Indonesia is to build the project in Sarulla with
power output to be sold to state electricity company PLN.
PLN refuses to increase the price from 4.5 US cents per kilowatt
hours (kWh) the level agreed upon during the signing of the
contract in 2004.
Medco asked for an increase with the rising cost of building the
PLN Planning and Technology Director Bambang Praptono said if
the price is to be changed the entire contract has to be revised.
Bambang pointed out the contract was awarded to Medco on tender
and if the price is changed or raised other bidders that failed
in the tender could protest.
Medco has teamed up with Ormat Technologies of the United States
and Itochu Corp. (TSE:8001) of Japan in the Sarulla Operation
Ltd consortium that won the tender.
Indonesian Govt Approves PLN's Business Margin For 2010
JAKARTA, June 24 Asia pulse - The Indonesian government has
agreed to sanction state electricity company PT PLN`s business
margin of two per cent or about Rp3 trillion to calculate
electricity subsidies for 2010, an Energy and Mineral Resources
Ministry official says.
The new margin had been adjusted to the capacity of the state`s
finances, the ministry`s director general of electricity and
energy utilization, J Purwono, said on Tuesday.
The government had set PLN`s business margin for this year at
one per cent or about Rp1.5 trillion (US$145.5 million).
Purnomo said the government would soon discuss the PLN`s
business margin for 2010 with the House of Representatives
(DPR)`s budget committee for endorsement.
He said the PLN`s business margin would be included in the
component of electricity subsidy.
"The government does not want PLN to suffer losses and that it
provides electricity subsidy. The subsidy includes the business
margin," he said.
In addition to the capacity of the state`s finances, the 2010
business margin was also based on the company`s normal
operations and the people`s purchasing power, he said.
Earlier, PLN proposed a three per cent business margin to
calculate electricity subsidy for 2010.
PLN President Director Fahmi Mochtar said the rise in business
margin was needed to shore up market confidence in the company`s
plan to issue global bonds.
This year PLN proposed a one per cent business margin with
budget allocations for electricity subsidy projected at Rp42.46

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