Medco E&P Lematang, a subsidiary of Indonesia's biggest private oil and gas firm, Medco Energi Internasional, has received US$90 million in loans from three Indonesian banks to develop its gas field in South Sumatra.
The three banks, Bank BNI, Bank BCA and state-owned Bank Mandiri, acted jointly to arrange the loan, providing $30 million each. Interest on the five-year loan is about 6 percent and may fluctuate depending on market conditions.
Medco Energi president director Darmoyo Doyoatmojo said the loans would be used to develop the Singa gas field project in Blok Lematang, South Sumatra. "We hope the cooperation will continue on, because there may be other energy-related projects that will need funding," he said on Friday.
Medco E&P will deliver 53,265 billion British thermal units (BBTU) of gas worth up to $287 million to PGN over three years starting March this year.
Medco E&P and PGN signed a purchase agreement in December 2009 that allows PGN to obtain Medco E&P gas produced at the Singa gas field from March, 2010, until April, 2013.
Shares in Medco Energi climbed 9.09 percent, or 275 points, on Friday after it announced that it had secured $90 million in loans from three renowned banks in the country. Medco Energi's share price closed at Rp 3,300 per share.
Medco Energi expects 2010 output to remain unchanged at around 60,000 barrels of oil equivalent per day, said Medco Energi president director Darmoyo Doyoatmojo.
Medco expects revenue to rise this year on a higher oil price, Doyoatmojo said in Jakarta on Friday as quoted by Bloomberg.
The government and central bank have since the beginning of the year been encouraging banks to disburse more loans to strengthen loan growth in the country to increase domestic consumption and investment and spur economic growth.
Bank Mandiri and BCA both reported at least 20 percent lending growth in the first half of the year compared to the same period last year.
BNI, however, reported a poorer performance in lending, with an increase of 5 percent in the first half of the year compared to the same period last year.
BNI has revised down its loan growth target for this year to 14 percent from a previous forecast of 17 percent.
The $30 million loan distributed to Medco adds to a total Rp 126 trillion in loans BNI disbursed to the company in the first half of the year.
BNI business banking director Khrisna Soeparto said the new loans meant BNI had now distributed a total of $229 million to Medco Group holding company. (est)
