Medco Energi Company Organizational Structure Essay

Literature review is a base doing research. Literature review is concept which used to solve the problems in the final report. In this case, the literature review is divided by: overview of natural gas, organizational structure of Medco Energi Corporation, financial report of PT. Mitra Energi Gas Sumatera (MEGS), decision tree, and sensitivity analysis.
2.1 Overview of Natural Gas
Natural gas in, itself, might be considered as an uniteresting gas. It is colorless, shapeless, and odorless in its pure form. Except the natural gas is combustible, if we do an improper handling, this natural gas will give bad impact such as earthquake and environmental damage. Natural gas is a combustible mixture of hydrocarbon gases. While natural gas is formed

Meta Epsi Pribumi Drilling Company in 1980 by Arifin Panigoro. It was the first wholly private-Indonesia-owned oil and gas drilling contractor. The
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company expanded in offshore drilling in 1991 and in oil exploration and production operations in 1992 (MedcoEnergi, Annual Report 1994, 1994).
In 1994, the company changed it’s name to Medco Energi Corporation (The Company) and became a Public Company, the first oil company to be listed on Jakarta Stock Exchange. The company is part of the Medco Group of Companies (MedcoEnergi, Capitalizing On Core Competence, 2012).
Medco Energi Corporation is owner of two land rings and is a Holding Company for it’s four subsidiaries.
Figure 2. 3 Corporate Structure Medco Energi in 1994
(MedcoEnergi, Annual Report 1994, 1994)
PT Meta Epsi Antareja Drilling Company (IMEA) with its principal business activity in Onshore Contract Drilling was established in 1983 and owns eight drilling rings, ranging from 1000 HP heli-rings to 2100 HP units capable of drilling to depths of greater than 20,000 feet. The Company has 96% equity interest in MEA (MedcoEnergi, Annual Report 1994,

$ - $ - Toll Fee Pipeline Rental - Gunung Megang $ 3,212,730.00 $ 2,542,173.97 $ (670,556.03) Total Revenues $ 6,316,288.20 $ 5,690,714.06 $ (625,574.14) COST OF SALES Production Cost $ 3,802,230.59 $ 3,011,952.90 $ (790,277.69) GROSS PROFIT $ 2,514,057.61 $ 2,678,761.16 $ 164,703.55 OPERATING EXPENSES General & Administrative $ 1,028,277.60 $ 1,230,127.10 $ 201,849.50 INCOME FROM OPERATIONS $ 1,485,780.01 $ 1,448,634.06 $ (37,145.95) OTHER INCOME (CHARGES) $ 131,824.20 $ 303,597.00 $ 171,772.80 INCOME BEFORE TAX EXPENSE $ 1,617,604.21 $ 1,752,231.06 $ 134,626.85 TAX BENEFIT (EXPENSE) $ (402,204.52) $ (438,057.77) $ (35,853.25) INCOME BEFORE MINORITY INTEREST IN NET EARNINGS $ 1,215,399.69 $ 1,314,173.30 $ 98,773.60 NET INCOME $ 1,215,399.69 $ 1,314,173.30 $ 98,773.60 EBITDA $ 4,051,116.91 $ 3,684,273.95 $