JAKARTA. PT Medco Energi Internasional Tbk (MEDC) has revised its production targets and capital expenditure (CapEx) as a mitigation measure for the coronavirus pandemic.
Vice President of Planning and Investor Relations of MEDC, Myrta Sri Utami, revealed that due to the low oil price trend, Medco Energy is reviewing expenses, saving money in various fields.
"The current oil price situation is very challenging and we cannot predict how long this condition will last," Myrta said as quoted by Kontan.co.id on Friday (3/4).
Myrta explained that MEDC reduced its production target from 110 mboepd to 100-105 mboepd. Meanwhile, the company's CapEx budget this year was also cut from US$ 340 million to US$ 240 million, US$ 180 million to support its oil and gas business and US$ 60 million for its electricity segment.
According to the investor update published on 17 March 2020, the reduction in oil and gas production is in line with the reduced investment and declining potential demand. (AM/AR)