Indonesian energy company Medco Energi Internasional MEDC.JK (MedcoEnergi) will raise its capital expenditure by nearly 50% to about $370 million this year, with a bigger portion allocated to oil and gas development, a company director said on Thursday.
MedcoEnergi spent around $250 million in capital expenditure in 2022, its director Ronald Gunawan told a media briefing.
"Our investment in oil and gas and power is rising. We are developing the Forel project, Baronang, and drilling in Corridor block," he said.
The Forel oil project and Bronang gas project are located in the South Natuna Sea Block off Sumatra island, while the Corridor block is located on the island. This year the company has set aside $250 million for oil and gas development alone to maintain output.
In Q3 2022, MedcoEnergi oil and gas output stood at 161,000 barrels of oil equivalent per day.
It also allocated around $110 million for power projects, including to develop the first phase Ijen geothermal project in East Java with capacity of 34MWe, he added.
(Reuters - Reporting by Bernadette Christina; Editing by Kanupriya Kapoor)