PT Medco Energi Internasional, through its subsidiary PT Medco E&P Tomori Sulawesi, has signed a loan facility agreement with Standard Chartered Bank, Singapore Branch (SCB) and PT Bank Mandiri (Persero) as the Mandated Lead Arrangers, Bookrunners and Underwriters. The Company will utilize the loan to develop and construct its Senoro upstream gas project , located in Central Sulawesi province.
Structured as a reserve based revolving facility, the loan facility is in the amount of USD260 million with a seven year tenor. In the Agreement, SCB and Bank Mandiri each provide 50% of total loan or equal to USD130 million respectively.
The Senoro Project is targeted to start producing and supply natural gas with a rate of 250 MMSCF per day to Donggi Senoro LNG (DSLNG) plant by end of 2014. In addition, some condensate is also expected to be produced at approximately 10,000 BOE per day at peak production. Currently the facilities construction of Senoro Project has reached 23% progress, with land acquisition and site preparation is completed, construction crews at work and drilling rigs mobilized at site.
Frila Yaman, Director & COO E&P of the Company stated, “I am very pleased with this achievement, as it will support the Company’s current largest major projects, the Senoro upstream development and the related Donggi Senoro LNG Plant, which will become the 4th LNG center in Indonesia. Significant progress in the execution has been achieved to date, and we are all excited to work on these prestigious projects.”
Lukman Mahfoedz, President Director & CEO MedcoEnergi added, “This is a very important milestone for the project to reach its completion by end of 2014 as planned. Completion of this project will expand our portfolio of producing assets and strengthen our operating cashflows for the long term.”