FY10 Investors’ Update

PT Medco Energi Internasional Tbk.

March 28th, 2011 www.medcoenergi.com Energy Company of Choice

Content Page

The Overview: Profile & Assets Portfolio 3

Shareholding Structure 4

Business Profile 5

Table of
Assets Portfolio 6

Projects Milestones 8

Business Performance: Financial & Operational KPIs 11

Financial KPIs

Breakdown by Business Segments

12

15
Contents
Business Development: Reserves , Exploration & Capex 18

Reserves Profile 19

Capex Profile 22

Highlights: Projects Initiatives 24

Appendix 31

Industry Background 32

Energy Comparison 34
 Overview:
Profile & Assets Portfolio
Shareholding Structure

ENCORE INT’L MITSUBISHI

60.6% 39.4%

PT Medco Energi Internasional Tbk (“MEI”) is an

TREASURY
ENCORE ENERGY PUBLIC investment holding company with 1 operating –
SHARES
holding company for domestic oil and gas
11.7% 50.7% 37.6% business unit, and 3 sub-holding companies for
international oil and gas, power generation, and
downstream industries.

MEDCOENERGI

Stockholder Composition FY10 FY09 ∆%

Encore Energy Pte. Ltd. 1,689,393,006 1,689,393,006 50.70

Public 1,252,603,944 1,252,603,944 37.58

Treasury Shares 390,454,500 390,454,500 11.72

Total 3,332,451,450 3,332,451,450 100.00

4
Business Profile

“A leading, domestic E&P focused company with

international oil and gas assets, supported by
diversified business portfolio.”
 An integrated energy company, operating in:
Oil & Gas Oil & Gas  Oil and gas E&P sector (domestic and
Indonesia International international assets)
 Power sector (power generation plants, EPC
and O&M services)
 Downstream sector (renewables, fuel
distribution and other utilization of upstream
resources)
Incubators Power
 With a long-term view, Medco allocates a portion
of its capital to its incubator unit to supervise the
development for nurturing new energy-related
business opportunities, e.g.:
Downstream  Coal Bed Methane
 Natural gas distribution
 Mining (coal)

5
Assets Portfolio
“Large portfolio, domestic and international, offers diversification of opportunities and risks across broader
geological formation.”

Block A Nunukan
Bengara Sembakung
Simenggaris USA TUNISIA
Tarakan
OMAN
Bangkanai LIBYA
Senoro Toili CAMBODIA
Merangin Rimau YEMEN

SCS Lematang
Bawean
Jeruk

Medco E&P Indonesia Medco Energi Global

• Medco’s international operations spread

• In Indonesia, Medco operates 10 blocks, across 20 assets in Asia, Africa, and the US.
maintains working interests in 3 blocks operated
by strategic partners, and holds economic US (incl. Gulf of Mexico) Oman
participating interest in an exploration field.
 Producing blocks 8  E&P service contract 1
Indonesia  Exploration blocks 5
Libya Tunisia
 Producing blocks 7  Exploration blocks 4
 Development blocks 2  Economic participation 1  Exploration block 1  Exploration block 1

Yemen Cambodia
 Exploration blocks 2  Exploration blocks 2

6
Assets Portfolio (cont’d)

“Other revenue streams not only further diversify risks but also monetize upstream assets by midstream and downstream
integration.”

Medco Power Indonesia

• 2 gas-fired power generation plants with a

mobile truck mounted power plant in Batam and
3 gas-fired power generation plants in South
Sumatra with total capacity of 185.1 MW Medco Downstream Indonesia
• 1 Operation & Maintenance project in Tanjung
Jati B, Central Java 1,320 MW • LPG plant in Rimau, South Sumatra, with capacity of
73,000 ton/year -- processing associated gas from
Rimau block
• Ethanol plant in Lampung, with capacity of 180 KL/day
• HSD storage and distribution, with storage capacity of
22,700 KL.

Incubator Projects

• Coal Bed Methane project, South Sumatra

• Coal Mining project, East Kalimantan
• Gas Pipeline project, Gunung Megang – Pagar Dewa

7
Projects Milestones
Corporate Updates

MedcoEnergi has issued the 2nd Medium Term Notes (MTN) in a total amount of USD 50 million on March 22nd 2010. The MTN
1 were issued in two tranches: Series A in the amount of USD 40 million with coupon rate of 7.25% per annum and a 2-year tenor and
Series B in the amount of USD 10 million with coupon rate of 8.00% per annum and a 3-year tenor.

MedcoEnergi completed the construction of Combined Cycle Power Plant in PLTGU Panaran II, Batam and started the
operation on March 25th 2010. The combined cycle which is operated by the Company’s indirect subsidiary PT Dalle Energy Batam will
2
add an another 20.6 MW of power supply from Panaran II by utilizing steam produced from the simple cycle gas turbine generator. Prior
to this, Panaran II produces 61.5 MW of power supply from 55.5 MW (2x27.75 MW) gas turbine generator and 6 MW chiller.

MedcoEnergi secured operatorship of Area 47 in Libya from the Libyan General People’s Committee (GPC) starting April 1st
2010 replacing Verenex Energy Area 47 Libya Limited (VEAL). GPC also granted a one year extension to the exploration period
3 commencing the same date of Operatorship. The move came after Verenex Energy Inc. which is Medcoenergi’s partner and also
operator of Area 47 was acquired by Libya Investment Authority (LIA) a sovereign wealth fund established by the Libyan Government in
2006 and has assets in excess of US$65 billion.

From April to November 2010, MedcoEnergi made six new oil discoveries at Area 47, Libya, which came from the N1-47/02,
L1-47/02, O1-47/02, K1-47/02, P1-47/02 and D1-47/04 exploration wells. The discoveries resulted a combined aggregate main flow rate
4 of 13,339 BOPD. Since exploration drilling activities began in March 2005 up to December 2010, there were 20 exploration wells and 6
appraisal wells drilled in the Area 47. Out of 20 exploration wells drilled, it has oil discovery in 18 wells, and 2 discoveries from appraisal
wells. This accounted for more than 80% success rate.

The Indonesian Minister of Energy and Mineral Resources, has signed off the consent letter for Donggi-Senoro gas allocation
5
on June 17th, 2010.

MedcoEnergi’s partner in Tunisia, Pioneer Natural Resources Anaguid Ltd. announced a successful drilling of Mona-1 well,
6 located at Anaguid Exploration Permit in South Tunisia on October 26th, 2010. The well was drilled and tested at initial
gross production rate of approximately 4,077 MBOEPD at 32/64” choke. MedcoEnergi held a 40% participating interest in Tunisia
through Medco Tunisia Anaguid Ltd. Pioneer is the operator of the block.

9
Corporate Updates

On October 28th 2010, MedcoEnergi received Contract Extensions for three of its PSC blocks from the Government of
7 Republic of Indonesia. Contract Extensions were given for South and Central Sumatra PSC until 2033, Block A PSC in Aceh until 2031 and
Bawean PSC located at offshore East Java until 2031.

MedcoEnergi has signed a loan facility agreement of USD 120 million with Mitsubishi Corp. to help finance the
Donggi-Senoro LNG Plant (DS-LNG) in Senoro-Toili, Sulawesi. The loan facility was secured on December 31st, 2010 from MedcoEnergi’s
8
DS-LNG consortium partner Mitsubishi Corp. through its wholly-owned subsidiary PT Medco LNG Indonesia (MLI), while MedcoEnergi
as the holding company will act as guarantor.

On January 24th, 2011 MedcoEnergi announced that the Final Investment Decision (FID) for Senoro-Toili Gas and LNG
9 Projects has been reached. In conjuction with the FID, the company also managed to pare down its participating interest in DS-
LNG from 20% to 11.1% through dilution which is in accordance to the Company’s strategy in developing its Key Projects.

MedcoEnergi has completed the divestment of 100% shares of Tomori E&P Limited (TEL) to Mitsubishi Corp. for
USD 260 million on January 31st, 2011. The transaction refers to the Company which has recently acquired 20% undivided working
10 interest of Senoro-Toili Production Sharing Contract (PSC) from PT Medco E&P Tomori Sulawesi (MEPTS) on December 22nd, 2010 both of
whom are wholly-owned subsidiaries of PT Medco Energi Internasional Tbk. (MEI). With the acquisition of TEL, MEI still hold a 30% stake
in Senoro-Toili PSC through MEPTS.

10
 Business Performance:
Financial & Operational KPIs
Financial KPIs

Financial Highlights (USD mm) FY10 FY09 ∆% 1,400 Revenues

1,200
Revenue 929.9 667.8 39.2 1,284
1,000
1,078

USD Million
800 930
Gross Profit 287.8 229.1 25.6 600 792
668
400
Income from Operations 114.5 72.2 58.6 200
0
EBITDA 222.5 155.2 43.3 2006 2007 2008 2009 2010

Earnings Before Tax 215.9 50.6 327.0 EBITDA

500
Net Income 83.1 19.2 331.9 400 466.7 473.4

USD Million
300
Equity 786.1 708.8 10.9 304
200
222.5
Total Assets 2,278.1 2,040.5 11.6 100 155.2
0
Total Liabilities 1,463.2 1,312.8 11.5 2006 2007 2008 2009 2010

Market Capitalization 1,250.9 868.6 44.0 Net Income

300
EPS (USD/share) 0.0282 0.0065 333.8 250
280.2

USD Million
200
150
83.1
100
19.2
50 6.6
38
0
2006 2007 2008 2009 2010

12
Financial KPIs (cont’d)

Operating Margin Profitability Ratios (%) FY10 FY09 ∆%

30%
27%
Gross Margin 30.9% 34.3% (9.8)
20% 23%
23%
EBITDA Margin 23.9% 23.2% 2.9
10%
11% 12% Operating Margin 12.3% 10.8% 13.9
0%
2006 2007 2008 2009 2010 Net Margin 8.9% 2.9% 210.2
Return on Equity 10.6% 2.7% 289.4
Net Margin
25% Efficiency Ratios (x) FY10 FY09 ∆%
20% 22%
15%
Revenue/ fixed assets 0.85 0.65 31.8
9%
10%
3% Revenue/ net working capital 1.78 2.37 (24.7)
5% 1%
5%
0%
2006 2007 2008 2009 2010
Investment Ratios (x) FY10 FY09 ∆%

CapEx/ Revenue 0.15 0.40 (56.2)

Return on Equity
40% CapEx/ Depreciation 1.33 3.24 (53.1)
38%
30%

20%
11%
10% 3%
1%
7%
0%
2006 2007 2008 2009 2010

13
Financial KPIs (cont’d)

CONSOLIDATED DEBTS (in USD mn) FY10 FY09 ∆%

A. Total Bank Loans 668.7 496.7 34.6
Current Portion 175.4 128.2 36.7
Non Current Portion 493.3 368.5 33.9
B. Other Obligations 315.6 288.6 9.4
Rupiah Bonds (due in 2012 and 2014) 166.2 158.7 4.8
MTN (due in 2011 and 2012) 149.4 41.8 257.2
USD Notes (Paid in 22 May 2010) 0.0 88.1 n.m.
Total 984.3 785.3 25.3
Capital Structure (x) FY10 FY09 ∆%
Debt to Equity Ratio
Net debt/total equity 1.02 0.75 36.4
2.00
Net debt/(net debt + equity) 0.51 0.43 18.0
1.50 1.80
Liquidity & Solvability (x) FY10 FY09 ∆%
1.00 1.32 1.25 Cash Ratio 0.36 0.50 (28.1)
1.11 Quick Ratio 1.84 1.41 31.1
0.95
0.50 Current Ratio 2.04 1.55 31.4
Debt to Equity Ratio 1.25 1.11 13.0
0.00
2006 2007 2008 2009 2010
Net Debt to Equity Ratio 1.02 0.75 36.4
Total Liabilities/Total Equity 1.86 1.85 0.5
Coverage Ratios (x) FY10 FY09 ∆%
Interest Coverage Ratio 2.87 3.10 (7.2)
Net debt/EBITDA 3.62 3.43 5.6

14
Breakdown by Business Segments

Segmental breakdown, FY10 Revenues

Electricity
10%

Oil and Gas E&P Downstream

61% 18%

Other Contracts
11%

FY10 FY09
Business Segment (in USD mn) Δ%
Revenue Revenue
Oil and Gas, Exploration & Production 569.4 470.2 21.1
Electricity 88.9 66.1 34.6
Downstream 170.1 47.8 256.1
Other Contracts 101.5 83.8 21.2
Consolidated Revenue 929.9 667.8 39.2

15
Breakdown by Business Segments (cont’d)

1P Reserves in MMBOE 2P Reserves in MMBOE Oil and Gas E&P FY10 FY09 ∆%
300
250
250 277 Proved Reserves - 1P
200 236 254 201.4 235.5 (14.5)
201 200 235 (MMBOE)
150 200
150 191
100 145 148 Proved and Probable
100 253.5 276.5 (8.3)
50
107
50
Reserves - 2P (MMBOE)
0 0 Oil Lifting / MBOPD 30.72 34.99 (12.2)
2006 2007 2008 2009 2010 2006 2007 2008 2009 2010
Gas Sales / MMCFD 155.15 104.34 48.7
Lifting in MBOEPD Lifting Cost per BOE Total Oil and Gas
57.24 52.82 8.4
80
10 (MBOEPD)
9.40
60 78.1 70.5 8.20 8.60 Average Oil Price,
63.5 57.2 81.47 63.98 27.3
40 52.8 5 5.84 USD/barrel
4.35
20 Average Gas Price,
3.57 2.97 20.2
0 0 USD/mmbtu
2006 2007 2008 2009 2010 2006 2007 2008 2009 2010 Revenues (mn USD) 569.4 470.2 21.1
Cost of Sales (mn USD) 323.0 269.9 19.7
Net Income (mn USD) 242.4 75.2 222.4

16
Breakdown by Business Segments (cont’d)

Electricity FY10 FY09 ∆%

Power Production - IPP / GWH 1,217 870 39.9
Power Production - O&M / GWH 9,271 8,221 12.8
Revenues (mn USD) 88.9 66.1 34.6
Cost of Sales (mn USD) 60.6 48.3 25.5
Net Income (mn USD) (0.08) 1.47 n.m.
Downstream FY10 FY09 ∆%
Fuel Distribution / KL 254,418 92,024 176.5
Average HSD Price / Rp per liter 6,184 5,495 12.5
Ethanol Production/ KL 19,764 8,665 128.1
Average Ethanol Price, USD / KL 559.1 488.6 14.4
LPG Sales / MT per day 42.0 45.2 (7.1)
LPG Price/ USD per MT 651 447 45.5
Revenues (mn USD) 170.1 47.8 256.1
Cost of Sales (mn USD) 175.4 48.6 261.0
Net Income (mn USD) (18.8) (32.0) (41.1)
Other Contracts FY10 FY09 ∆%
Revenues (mn USD) 101.5 83.8 21.2
Cost of Sales (mn USD) 83.1 71.9 15.6
Net Income (mn USD) 8.8 3.1 178.1

17
 Business Development:
Reserves & Exploration Program
Reserves Profile
“The combination of oil and gas reserves on Medco’s portfolio will help sustain production life for years to come”
 1P or Proved reserves:
Reserves claimed to have a reasonable certainty
80.0 2010 1P Reserves (MMBOE)
61.5 (normally at least 90% confidence) of being produced.
60.0  2P or Proved and Probable reserves:
43.4 Oil Gas
Reserves claimed to have a lower certainty (at least
33.0
40.0 50% confidence) of being produced due to
operational, contractual, or regulatory uncertainties.
20.0 11.1 10.3 11.6
3.2 1.8 2.0
6.2
0.9
6.9 4.4 5.2  Contingent Resources:
- Discoveries not yet considered fully ready for
commercial development due to certain
contingencies.
 As of FY10, both Medco’s 1P reserves and 2P
reserves are comprised of 41% oil and 59% gas.

→ Most of 2P reserves and Contingent Resources are

80.0 2010 2P Reserves (MMBOE) technically proven – conversion to proved reserves is
64.2
pending certain milestones of commerciality factors
60.0 52.7
42.4 Oil Gas e.g. government approvals, final POD etc.
40.0
20.8
20.0 13.8 8.8 12.3 14.5  Libya-47 Contingent
5.5 8.2
4.0 2.5 2.4 1.3  Senoro Toili Resources
-
 Bangkanai
 Simenggaris 217.2
MMBOE
71% oil, 29% gas

19
Potential Additional Reserves

“Medco will book its technically proven discovery from major projects as proved reserves upon achievement of certain
milestones.“

Major Projects Assets Est. Contingent Resources Key Milestones

 Acquired 50% working interest in 2005

 Obtained reserves estimation from D&M in 2008
175,850  Submitted POD to Libyan National Oil Corporation (NOC)
Libya-47 MBOE in late 2008
 Secured operatorship and exploration extension in April
2010
 FID: pending POD approval by the NOC

 Established operating company in 2007

 Signed GSA in early 2009, with an amendment in late
2010
27,128  Change of working interest-ownership in the Senoro Toili
Senoro Toili MBOE PSC from 50% to 30%
 Migration of 71.3 mmboe contingent resources to 2P,
leaving 27.1 mmboe for domestic market allocation
 FID has been announced on 24 January 2011
Subtotal 202,978 MBOE

Total 2P + contingent resources 456,443 MBOE

20
Exploration Program

“To help arrest the decline and replenish reserves due to production of existing and new assets, Medco will do more
exploration drillings in the future.“

Indonesia E&P International E&P

116
120 Development Wells 10 9
Development Wells
100 Exploration Wells 87 8 Exploration Wells
80 6
63 6
60 36
4 4
4 3
40 27 25 2
21
13 9 9 2 1 1
20 6 6 7 5
0 0 0 0 0 0
0 0
2009A 2010E 2011F 2012F 2013F 2014F 2015F 2009A 2010E 2011F 2012F 2013F 2014F 2015F

2004 2005 2006 2007 2008 2009 2010

Oil and Gas Capex 235.09 140.57 156.51 312.64 284.30 198.61 126.94
Reserve Addition, MMBOE (6.53) 39.74 4.34 30.26 (9.88) 154.00 32.19
Actual 3 Year Avg F&D $/BOE 10.98 9.41 14.18 8.20 30.48 4.56 3.46
Actual 3 Year Avg RRR 0.37 0.52 0.41 0.86 0.31 2.49 2.75
Reserves Life Index, years 5.84 6.37 6.90 6.50 7.21 6.53 12.27

21
Capex Profile

“During the next 3 years Medco will spent substantial amount of Capex to start develop its Major Projects following the
approval of their Final Investment Decisions.”

E&P CAPEX 2009 2010 2011 F 2012 F 2013 F 3-YR F

Exploration Capex 33.5 38.5 89.8 86.9 67.4 244.1

Development Capex 165.1 88.4 148.6 263.4 301.9 713.9

TOTAL E&P CAPEX 198.6 126.9 238.4 350.3 369.3 958.0

Non E&P Capex 70.7 17.0 194.8 125.7 63.9 384.4

TOTAL CAPEX NET 269.3 143.9 433.2 476.0 433.2 1,342.4

22
Capital Generation Strategy
“Asset optimization/divestment strategy is in place to reshape Medco’s asset portfolio.”

Funding Requirement Balance Sheet Management Optimum Capital Structure

Asset optimization:
 Debt service  Divestment/farm-out  Lower financing
 Capex (for major  Capex rationalization as  More equity & cash proceeds
projects) a result from from assets optimization
divestments

Asset Optimization Liability/Financing Plans

 Strategic minority divestment in subsidiaries.  Continue discussion with ECA and multilateral
agencies, which less affected by recent credit
 Divestment of maturing assets (where Medco does not hold crunch, to finance major projects.
operatorship).
 Utilize the underlying assets/reserved –based
 Prioritize capex allocation for major projects, accompanied by regular lending for selective E&P assets.
review of cost and schedule.
 Continue to explore various financing options
 Limited funding for selected exploration activities and new incubator (bank facilities, capital market instruments) with
business for future growth. competitive price.

 Cost containment and reduction program.  Balance the proportion of debt at corporate and
subsidiary level, project finance at assets level.
 Explore opportunistic-driven projects (icl. potential acquisitions) with
immediate value generation.

23
 Highlights:
Projects Initiatives
Projects Initiatives

Major Projects Portfolio

BLOCK A

SARULLA
Libya 47

Sumatera
Kalimantan SENORO
RIMAU EOR LNG Plant
Sulawesi
SINGA LEMATANG

Papua
Oil Development
Power Plant
Gas Development
Jawa

TARGET %
PROJECTS Project Descriptions Partners Page
Start-Up ownership
Block A 2013 - 2015 Gas field development up to 110 MMscfd 41.67% Premier, Japex 25
Rimau 2013 Oil field - Enhanced Oil Recovery 95% PD-PDE 26
Senoro 2014 Gas field development up to 250 MMscfd 30% Pertamina 27
DS- LNG 2014 LNG plant , single train of 2.1 mtpa capacity 11.1% Pertamina, Mitsubishi 27
Libya 47 2014 Oil field development of 50,000 - 100,000 bopd 50% Verenex (LIA) 28
Sarulla 2014 - 2015 Geothermal power plant, 3x110 MW 37.25% Kyushu, Ormat, Itochu 29

25
Projects Initiatives (cont’d)

Block A
 Objective : Monetize 121.7 BCF 2P gas contingent resources;
 Project Scope: 2 x 60 MMSCFD gas plant and associated pipeline
 Project Status:
 FEED completed; continue preparing EPC tender documents;
 Complete pre-sanctioned review by independent consultant to improve project readiness prior to FID;
 GSA with Pupuk Iskandar Muda (“PIM”) and PLN have been signed in 2007 and 2008, respectively. Gas prices for
both buyers have been approved by MESDM in 2009. GSA with PIM has been effective on 12 November 2010;
 Obtained PSC Extension up until 2031 from the Government;
 Final Investment Decision is targeted to be reached on 4Q11.

26
Projects Initiatives (cont’d)

SUMATRA

Rimau

Rimau Enhanced Oil Recovery Project

 Objective : Increase oil production volume from existing reservoir by using new EOR technique
 Project Scope : Implementation of pilot project Enhance Oil Recovery (EOR) to increase around 60MMBOE
Original Oil In Place (OOIP) in 2013
 Project Status:
 Obtained budget approval from BPMIGAS, major contracts are awarded and site preparation work started.
 This pilot project is a step to full expansion, contains 6 pattern drilling;
 Capex will be internally funded from operation.

27
 Projects Initiatives (cont’d)
Senoro Gas/LNG Development

Objective : Commercialize 1.96 TCF of gross 2P reserve and contingent gas resources through LNG Product

Upstream: Downstream:
• Project Scope: currently build 250 MMSCFD plant and • Project Scope : Build 2.1 MT per annum LNG facilities
associated pipelines, • Project Status:
• Project Status: • Final Investment Decision approved;
• Final Investment Decision approved; • Dilution Agreement has been signed on 31 December
• Change of working interest-ownership in the Senoro Toili 2010 and upon its effectiveness will change the
PSC on 31 January 2011 from 50% to 30%; shares-ownership from 20% to 11.1%;
• Received US$260mn from the 20% sale to Mitsubishi; • Secured US$120mn loan facility from Mitsubishi for
• Financing – negotiations with local banks. financing.

28
Projects Initiatives (cont’d)
Libya Block 47

 Objective : Development of area 47 oil discovery in Libya with Gross Contingent Resources of 352 MMBOE
 Project Scope : Produce 50-100 MBOPD production facilities with associated pipelines
 Project Status :
 Total 26 wells drilled, 20 exploration wells and 6 appraisal wells;
 Successful exploration results with aggregate flow of 123,025 bopd based on 17 exploration and 2 appraisal
wells;
 Obtained operatorship replacing Verenex and extended exploration period until 31 March 2011;
 Continue exploring financing in the form of reserve based lending.
 Maintain monitoring on the latest situation in Libya’s uprising.

29
Projects Initiatives (cont’d)
Sarulla Geothermal

 Objective : Develop renewable energy resources in Geothermal sector by

building strategic alliances with Kyushu, Ormat, Itochu
 Project Scope : Build geothermal power plant 3x110MW in Sarulla North
Sumatra, using combined cycle unit and Ormat Energy Converter
 Project Status :
 Electricity Tariff – renegotiate related agreements with PLN;
 Engineering, Procurement & Construction (EPC), Drilling, O&M contract –
preparing for negotiations and finalization;
 Financing – positive response from JBIC/ADB and other commercial banks
to provide funding.
30
Appendix
 Industry Background: Cost Recovery Scheme

“Under PSC mechanism, production level will indirectly affect the contractor’s entitlement. However, as the cost recovery is
done dollar to dollar, volume becomes less relevant and impact will mainly be on the margin.”

 Right after production, 20% of it is “provisioned” to meet the First

Gross Production
Tranche of Petroleum (FTP) requirement of the PSC. This FTP will
20% later on be shared between government and contractor according
FTP
to the agreed split ratio.
Cost Recovery
 Thereafter the remaining 80% of the revenue are deducted by
recoverable operating cost becoming the amount of equity to be
split.
Equity to be Split
 Prior to splitting the share between government and the
contractor, the FTP provisioned earlier is added back to the equity.

 Then each party will receive each share according to the agreed
DMO Reimbursement
split. Typically 85:15 for oil and 65:35 for gas. Note: split for Senoro
Government Contractor is 65:35 oil, 60:40 gas.
Share Share
DMO
 The contractor will need to serve Domestic Market Obligation
(DMO), normally up to 25% of contractor share. DMO holiday
Tax applies for the first 60 months.

Effective Split:  Afterwards, the contractor receives its net contractor share.
after tax
Indonesia Oil 85/15 Net Together with the recoverable operating cost to be recovered in oil,
Share Gas 70/30 Entitlement they comprise the total contractor share (entitlement).
In favor of
Government

32
Industry Background: Indonesia

Indonesia Proved Oil Reserves and Production

5,500 1,500
Reserves (mmbo) Production (mbopd)
5,000 1,360

4,500 1,220

4,000 1,080

3,500 940

5,120 5,100 4,720 4,730 4,300 4,190 4,370 3,989 3,748 4,403
3,000 800
mmbo 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 mbopd

Indonesia Proved Gas Reserves and Production

120.0 7.5
Reserves (tcf) Production (bcf)
108.0 112.5 112.5 7.2
106.0
96.0 6.9
97.8
94.7 92.9
91.9 90.3 90.3
84.0 87.5 6.6

72.0 6.3

60.0 6.0

tcf 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 bcf
Source: ESDM
33
Energy Mix Conversion Table

34
Energy Price Parity Chart
4.00
Oil
Gas
3.50
LNG
LPG
3.00
COAL
Ethanol
2.50
Methanol

2.00

1.50

1.00

0.50

-
Jan-07 Apr-07 Jul-07 Oct-07 Jan-08 Apr-08 Jul-08 Oct-08 Jan-09 Apr-09 Jul-09 Oct-09 Jan-10 Apr-10 Jul-10 Oct-10 Jan-11

Note: Oil is the base for Energy Price Parity acting as the denominator to other types of energy
35
Disclaimer

This document contains certain results of operation, and may also contain certain projections, plans,
strategies, policies and objectives of the Company, which could be treated as forward looking
statements within the meaning of applicable law. Forwards looking statements, by their nature,
involve risks and uncertainties that could cause actual results and development to differ materially
from those expressed or implied in these statements. PT MEDCO ENERGI INTERNASIONAL TBK. does
not guarantee that any action, which should have been taken in reliance on this document will bring
specific results as expected.

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Company address:
PT Medco Energi Internasional Tbk.
The Energy Building 52nd Floor
SCBD Lot 11A
Jl. Jend. Sudirman, Jakarta 12190
Indonesia
P. +62-21 2995 3000
F. +62-21 2995 3001

Investor Relations:

Nusky Suyono
M. +62-816 895 928
Email: [email protected]

Nugraha Adi
M. +62-819 815 815
Email: [email protected]

Website: www.medcoenergi.com