Medco may postpone 6 mega-projects

The Jakarta Post,   Jakarta   |  Mon, 11/03/2008 9:08 PM 

Indonesia's largest publicly-traded oil company, PT Medco Energi Internasional Tbk., may postpone its plans to construct six energy projects worth US$3 billion (Rp 30 trillion) due to the global economic recession.

The company's chief commissioner, Hilmi Panigoro, said here on Monday that banks should provide 70 percent of the funds needed for the projects, while the remaining 30 percent would be taken from the company's internally generated funds.

"Because of the crisis, banks have tightened their liquidity. Thus, we will possibly reschedule the big projects," Hilmi said, as quoted by Antara news agency.

Although the banks' liquidity was in fact still sufficient, Hilmi said the company was considering postponing the projects because of the possible high bank interest rates resulting from the crisis.

Hilmi said the company had yet to officially review the projects, and that it would keep working on the Senoro Liquefied Natural Gas (LNG) plan that is being financed by the Japan Bank Indonesia's largest publicly-traded oil company, PT Medco Energi Internasional Tbk., may postpone its plans to construct six energy projects worth US$3 billion (Rp 30 trillion) due to the global economic recession.

The company's chief commissioner, Hilmi Panigoro, said here on Monday that banks should provide 70 percent of the funds needed for the projects, while the remaining 30 percent would be taken from the company's internally generated funds.

"Because of the crisis, banks have tightened their liquidity. Thus, we will possibly reschedule the big projects," Hilmi said, as quoted by Antara news agency.

Although the banks' liquidity was in fact still sufficient, Hilmi said the company was considering postponing the projects because of the possible high bank interest rates resulting from the crisis.

Hilmi said the company had yet to officially review the projects, and that it would keep working on the Senoro Liquefied Natural Gas (LNG) plan that is being financed by the Japan Bank for International Cooperation. (ewd)