MEDC Slashes 2020 Capex and Production Target

By Editorial Team 27/03/2020
Summary

PT Medco Energi Internasional Tbk slashed its capital expenditure in 2020 following the drop in global crude oil price. The CEO of Medco Energi, Roberto Lorato, explained that the decision taken as a response to the decrease in the global oil price to below US$ 30 per barrel and the possible drop in demands in the next few quarters. As for the capital expenditure, the company slashed it down from US$ 340 million to only US$ 240 million.

The company, trading on the Indonesian Stock Exchange as MEDC, decreased not only the capital expenditure but also its production target this year from 110,000 barrels of oil equivalent per day (BOEPD) to 100,0000-105,000 BOEPD. “We will keep monitoring the condition, but the capital expenditure will remain low until 2021, depending on the oil price development this year,” Roberto explained in the latest investor update on the MEDC website. He also predicted that the production drop could potentially continue until next year.

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