Page 11 - AsianOil Week 35

AsianOil OCEANIA AsianOil

MedcoEnergi circles Australian assets

FINANCE & MEDCOENERGI is reportedly pursuing a Reports of Medco’s interest in upstream assets
INVESTMENT clutch of upstream assets in Australia, despite in Australia come after the group announced a
the Indonesian group having swung into the red net loss in the first quarter of this year.
in the first quarter. Medco said on August 26 that it had recorded
Medco is understood to have progressed a $20mn net loss, as deficits from copper and
to the second round of bids for Italian major gold mining subsidiary Amman Mineral Nusa
Eni’s energy projects, local daily The Australian Tenggara (AMNT) offset profits from its oil, gas
reported on August 30. The Indonesian devel- and power divisions.
oper is facing off against partners Macquarie and Earnings before interest, tax, depreciation
Neptune Energy, though other contenders may and amortisation (EBITDA) climbed 13% year
still reach the second round, which is being run on year in the quarter to $181mn, on the back
by Citi. of Medco’s acquisition of Ophir Energy in June
Eni’s assets include a 10.99% stake in 2019. The Indonesian developer said Ophir’s
Darwin LNG and the plant’s feedstock field acquisition “more than offset the 15% drop in
Bayu-Undan, as well as 100% of the produc- realised oil prices”, which fell from $60.7 per bar-
ing Blacktip natural gas field and attached rel in the first quarter of 2019 to $51.3 per barrel
Yelcherr processing plant. in the same period of this year.
The Italian major also owns stakes in four Medco produced 101,000 barrels of oil equiv-
exploration licences, including the Joint alent per day (boepd) in the quarter, up 10% y/y.
Petroleum Development Area in the Timor The company said it had brought its Meliwis gas
Sea and the undeveloped Evans Shoal gas development project in the Madura Offshore
field, which could be a potential backfill for production-sharing contract (PSC) on stream
Darwin LNG. in July using an unmanned wellhead platform.
In addition to its bid for Eni’s assets, which Medco added that it had secured approvals
are estimated to be worth AUD1bn ($739.9bn), from both project partners and upstream reg-
The Australian reported that Medco is “circling” ulator SKK Migas to use a similar approach in
ExxonMobil’s $2.5bn sale of its Gippsland Basin the development of the Paus Biru gas field in the
assets in the Bass Strait. Sampang PSC.™

Cooper’s losses widen in 2019-2020

PERFORMANCE AUSTRALIAN independent Cooper Energy Cooper said it had recorded an underlying
has posted an AUD86mn ($62.7mn) net loss for net loss of AUD6.6mn ($4.81mn), compared
financial year 2019-2020, a widening on the pre- with an underlying profit of AUD13.3mn
vious year’s net loss of AUD12.1mn ($8.82mn). ($9.7mn) in the previous year. The company
The company said the weaker result was pointed to increased operational expenses, net
the result of incurring significant items worth finance costs, care and maintenance and depre-
AUD79.4mn ($57.9mn) during the 12-month ciation and amortisation as contributing to the
period, and principally comprise non-cash “deterioration in underlying earnings”.
impairments, non-cash restoration expense Revenue for the period grew by 3% year on
charges and liquidated damages income. year to AUD78.1mn ($57mn). Cooper said a
Cooper managing director David Maxwell 22% y/y increase in revenue from gas sales to
said: “Recognition of 2020 gas prices and expec- AUD63.6mn ($46.38mn) more than offset fall-
tations on the carrying value of our uncontracted ing oil revenues, which shrank 38% y/y.
gas was the major factor in the impairments that Maxwell added that the delay to the Orbost
affected our statutory result.” Gas Processing Plant’s (OGPP) readiness for

Week 35 03•September•2020 www. NEWSBASE .com P11