In 2014, the Company succeeded in arresting the natural
decline of its oil and gas production to under 10%. This
is an achievement in and of itself, when compared to
the average natural decline of oil and gas production
in the normal range of 20%-25%. Although the global
crude oil price declined in the second semester of 2014,
MedcoEnergi achieved a realized crude oil price of
US$97.83/barrel, or just 9.67% below the realized crude
oil price in 2013. Whereas for the realized price of gas
that is based on long-term sale and purchase contract
with buyers, the Company realized a 9.16% increase over
the average price of gas to US$5.60/MMBTU in 2014.
This increase reflects the success of the Company in
renegotiating the sale and purchase contracts for gas,
which helped the Company’s performance in 2014 by
mitigating the decline in the realized oil and gas sales
as a result of the natural decline rate and lower realized
oil price. The Company booked total net sales of oil and
gas amounting to US$701.43 million in 2014, lower than
US$826.84 million in 2013.