9M10 Investors’ Update

PT Medco Energi Internasional Tbk.

November, 2010 www.medcoenergi.com Energy Company of Choice

Content Page

The Overview: Profile & Strategy 3

Shareholding Structure 4

Business Profile 5

Table of
Assets Portfolio 6

Corporate Strategy 8

Capital Generation Strategy 9

The Business: Financial & Operational Performance

Financial KPIs
10

11
Contents
Breakdown by Business Segments 14

Reserves Profile 17

The Highlights: Corporate & Projects Milestones 19

Corporate Updates 20

Projects’ Initiatives 21

The Industry: Background & Market Positioning 27

Industry Background: Cost Recovery Scheme 28

Industry Positioning 30
2
 Overview:
Profile & Strategy
Shareholding Structure

ENCORE INT’L MITSUBISHI

60.6% 39.4%

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

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 1H10 1H09 ∆%

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.”

USA TUNISIA
OMAN
LIBYA
CAMBODIA
YEMEN

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
 Corporate Strategy

Business Portfolio
Build a business with profitable growth based on three main businesses; E&P, Power and downstream.
1

Develop a strong position in renewable fuels over 5 – 8 year period by reconfiguring and refocusing Medco
2 Downstream's businesses leveraging off Indonesia’s vast agriculture economy.

Improve Medco Global’s position and increase clarity around the Group’s international activity footprint.
3

Allowing flexibility and innovation through allocation of capital to a New Business Incubator unit.
4

Organizational Effectiveness
Enhance organizational effectiveness by instilling rigorous financial discipline, fostering a pervasive
5 performance culture and building personnel competencies.

8
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.

9
 The Business:
Financial & Operational KPIs
Financial KPIs

Financial Highlights (USD mm) 9M10 9M09 ∆% 1,400 Revenues

1,200
Revenue 632.8 482.2 31.2 1,284
1,000
1,078

USD Million
800
Gross Profit 226.9 143.9 57.7 600 792
633
668
400
Income from Operations 116.9 35.8 226.6 200
0
EBITDA 188.8 117.4 60.8 2006 2007 2008 2009 9M10

Earnings Before Tax 51.1 34.9 46.2 EBITDA

500
Net Income 18.0 15.2 18.5 400 466.7 473.4

USD Million
300
Equity 721.6 704.6 2.4 304
200
188.8
Total Assets 2,064.4 1,890.7 9.2 100 155.2

0
Total Liabilities 1,355.0 1,170.9 15.7 2006 2007 2008 2009 9M10

Market Capitalization 1,241.6 998.3 24.4 Net Income

300
EPS (USD/share) 0.0061 0.0050 22.0 250
280.2

USD Million
200
150
100
19.2 18.0
50 6.6
38
0
2006 2007 2008 2009 9M10

11
Financial KPIs (cont’d)

Operating Margin Profitability Ratios (%) 9M10 9M09 ∆%

30%
27%
Gross Margin 35.9% 29.8% 20.2
20% 23%
23%
EBITDA Margin 29.8% 24.3% 22.5
19%
10%
11% Operating Margin 18.5% 7.4% 148.9
0%
2006 2007 2008 2009 9M10 Net Margin 2.8% 3.1% (9.7)
Return on Equity - Annualized 3.3% 2.9% 15.7
Net Margin
25%
Efficiency Ratios (x) 9M10 9M09 ∆%
20% 22%
15% Revenue/ fixed assets - Annualized 1.15 1.02 12.8
10%
3% 3%
1%
5%
5% Revenue/ net working capital -
0% 3.58 2.64 35.8
Annualized
2006 2007 2008 2009 9M10

Return on Equity Investment Ratios (x) 9M10 9M09 ∆%

40%
38%
CapEx/ Revenue 0.18 0.38 (52.5)
30%

20% CapEx/ Depreciation 1.57 2.22 (29.2)

10% 3% 3%
1%
7%
0%
2006 2007 2008 2009 9M10*

*Annualized
12
Financial KPIs (cont’d)

CONSOLIDATED DEBTS (in USD mn) 9M10 9M09 ∆%

A. Total Bank Loans 677.1 472.8 43.2
Current Portion 158.1 75.8 108.7
Non Current Portion 519.0 397.0 30.7
B. Other Obligations 267.0 242.1 10.3
Rupiah Bonds (due in 2012 and 2014) 167.3 154.1 8.5
MTN (due in 2011 and 2012) 99.7 0.0 n.m.
USD Notes (Paid in 22 May 2010) 0.0 88.0 n.m.
Total 944.1 714.9 32.1
Capital Structure (x) 9M10 9M09 ∆%
Debt to Equity Ratio
Net debt/total equity 1.08 0.74 46.4
2.00
Net debt/(net debt + equity) 0.52 0.42 22.3
1.50 1.80
Liquidity & Solvability (x) 9M10 9M09 ∆%
1.00 1.32 1.31 Cash Ratio 0.42 0.49 (13.8)
1.11
0.95 Quick Ratio 1.59 1.64 (3.5)
0.50
Current Ratio 1.89 1.91 (0.8)
0.00
Debt to Equity Ratio 1.31 1.01 29.0
2006 2007 2008 2009 9M10 Net Debt to Equity Ratio 1.08 0.74 46.4
Total Liabilities/Total Equity 1.88 1.66 13.0
Coverage Ratios (x) 9M10 9M09 ∆%
Interest Coverage Ratio 3.39 3.01 12.9
Net debt/EBITDA – Annualized 3.09 0.21 1,391.6

13
Breakdown by Business Segments

Segmental breakdown, 9M10 Revenues

Electricity
9%
Oil and Gas E&P
65%
Downstream
14%

Other Contracts
12%

Business Segment (in USD mm) 9M10 Net Income

Medco Energi Internasional, Tbk. (stand-alone) (58.4)
Oil and Gas, Exploration & Production 76.7
Electricity 0.9
Downstream (7.5)
Other Contracts 6.2
Consolidated Net Income after Eliminations 18.0
14
Breakdown by Business Segments (cont’d)

1P Reserves in MMBOE 2P Reserves in MMBOE Oil and Gas E&P 9M10 9M09 ∆%
300
250
250 277 Proved Reserves - 1P
200 236 261 220.1 89.1 146.9
220 200 235 (MMBOE)
150 200
150 191
145 148 Proved and Probable
100 100 261.1 172.8 51.1
107
50
Reserves - 2P (MMBOE)
50

0 0 Oil Lifting / MBOPD 30.54 35.08 (12.9)

2006 2007 2008 2009 9M10 2006 2007 2008 2009 9M10
Gas Sales / MMCFD 151.35 104.35 45.0
Lifting in MBOEPD Lifting Cost per BOE Total Oil and Gas
56.41 52.92 6.6
80
10 (MBOEPD)
60 78.1 70.5
8.20 8.60 8.04 Average Oil Price,
63.5 79.38 59.61 33.2
40 52.8
56.4 5 5.84 USD/barrel
4.35
20 Average Gas Price,
3.59 3.07 16.9
0 0 USD/mmbtu
2006 2007 2008 2009 9M10 2006 2007 2008 2009 9M10 Revenues (mn USD) 411.4 345.8 19.0
Cost of Sales (mn USD) 216.1 222.4 (2.8)
Net Income (mn USD) 76.7 67.7 13.3

15
Breakdown by Business Segments (cont’d)

Electricity 9M10 9M09 ∆%

Power Production - IPP / GWH 800 635 25.9
Power Production - O&M / GWH 6,709 4,881 37.5
Revenues (mn USD) 59.5 48.0 24.1
Cost of Sales (mn USD) 42.4 35.1 20.9
Net Income (mn USD) 0.92 (1.49) n.m.
Downstream 9M10 9M09 ∆%
Fuel Distribution / KL 134,868 60,697 122.2
Average HSD Price / Rp per KL 5,966 4,474 33.3
Ethanol Production/ KL 14,443 3,735 286.7
Average Ethanol Price, USD / KL 590 405 45.7
LPG Sales / MT per day 42.3 46.1 (8.2)
LPG Price/ USD per MT 621 399 55.5
Revenues (mn USD) 88.1 26.5 231.8
Cost of Sales (mn USD) 88.2 26.5 233.3
Net Income (mn USD) (7.5) (18.6) (59.9)
Other Contracts 9M10 9M09 ∆%
Revenues (mn USD) 73.7 61.9 19.2
Cost of Sales (mn USD) 59.1 54.3 8.8
Net Income (mn USD) 6.2 1.0 507.6

16
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:
Indonesia International Reserves claimed to have a reasonable certainty
1P (normally at least 90% confidence) of being produced.
 Rimau  East Cameron (Proved)  2P or Proved and Probable reserves:
 Kampar  Main Pass Reserves claimed to have a lower certainty (at least
 Lematang  Mustang Island 50% confidence) of being produced due to
 Tarakan  Brazos operational, contractual, or regulatory uncertainties.
 Sembakung 220.1  Contingent Resources:
 West Delta
Discoveries not yet considered fully ready for
 Senoro Toili MMBOE
commercial development due to certain
 Bawean 37% oil, 63% gas
contingencies.

→ Most of 2P reserves and Contingent Resources are

Indonesia International 2P technically proven – conversion to proved reserves is
(Proved and pending certain milestones of commerciality factors
 Rimau  East Cameron e.g. government approvals, final POD etc.

Probable)
Kampar  Main Pass
 Lematang  Mustang Island
 Libya-47 Contingent
 Tarakan  Brazos
 Sembakung  West Delta 261.1  Block A Resources
 Senoro Toili MMBOE  Senoro Toili
 Bawean 40% oil, 60% gas  Bangkanai 257.30
 Simenggaris MMBOE
Based on 9M10 data 60% oil, 40% gas

17
 Reserves Profile: 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

45,214  Signed GSA early 2009
Senoro Toili MBOE  Migration of 118.9 mmboe contingent resources to 2P,
leaving 45.2 mmboe for domestic market allocation
 FID pending: conditions on GSA

 Acquired 41.67% working interest in 2006

 Signed GSA with two off-takers in Q4 2007 and Q1 2008
22,067
Block A MBOE
 Contract extension received on 28 Oct 2010, migration of
reserves will be booked by end of 2010
 FID: Will be decided soon
Subtotal 243,131 MBOE

Total 2P + contingent reserves 514,707 MBOE

18
 Highlights:
Corporate & 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.

The Indonesian Minister of Energy and Mineral Resources, has signed off the consent letter for Donggi-Senoro gas allocation
4
on June 17th, 2010.

From May to July 2010, MedcoEnergi made three new oil discoveries at Area 47, Libya, which came from the N1-47/02, L1-
47/02 and O1-47/02 exploration wells. The discoveries resulted a combined aggregate main flow rate of 9,409 BOPD. Since exploration
5
drilling activities began in September 2006, there were 24 wells drilled in the Area 47, which consisted of 20 exploration and 4 appraisal
wells. Out of 20 exploration wells drilled, it has oil discovery in 15 wells, and 2 discoveries from appraisal wells.

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

20
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 22
Rimau 2013 Oil field - Enhanced Oil Recovery 95% PD-PDE 23
Senoro 2014 Gas field development up to 250 MMscfd 50% Pertamina 24
DS- LNG 2014 LNG plant , single train of 2.1 mtpa capacity 20% Pertamina, Mitsubishi 24
Libya 47 2014 Oil field development of 50,000 - 100,000 bopd 50% Verenex 25
Sarulla 2014 - 2015 Geothermal power plant, 3x110 MW 37.25% Kyushu, Ormat, Itochu 26

21
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-Sanction Review by independent consultant to improve project readiness prior to FID
 GSA with Pupuk Iskandar Muda and PLN have been signed in 2007 and 2008, respectively. Gas prices for
both buyers have been approved by MESDM in 2009;
 Obtained endorsement from Local Oil and Gas Regulator, PSC Extension received from the Government. No
major capex before Final Investment Decision.
22
Projects Initiatives (cont’d)

SUMATRA

Rimau

Rimau Enhance 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.

23
 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: Build 250 MMSCFD plant and associated • Project Scope : Build 2.1 MT per annum LNG facilities
pipelines, • Project Status:
• Project Status: • GSA signed with Senoro PSC and Matindok PSC, and
• Reserve assessment by GCA completed; LNG HOA with Japanese (Kyushu & Chubu) and
• ESDM has recommended project to proceed; Korean (KoGas) buyers;
• No major capex before Final Investment Decision; • Financing – continuing negotiations with JBIC and
• Financing – negotiations with commercial banks. commercial banks.
• Final Investment Decision – closing out outstanding
CPs

24
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 24 wells drilled, 20 exploration wells and 4 appraisal wells;
 Successful exploration results with aggregate flow of 119,345 bopd based on 15 exploration and 2 appraisal
wells;
 Obtained operatorship replacing Verenex and extended exploration period until 31 March 2011;
 Target to obtain commerciality in 4Q10;
 Continue exploring financing in the form of reserve based lending.

25
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 underway 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.
26
 The Industry:
Background and Market
Positioning
 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

28
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
29
Industry Positioning “One of the largest oil producing companies in the region.”

2008 gross oil/condensate production of oil upstream operators in Indonesia

449.8
mbopd
Medco is the #4 oil company operating in Indonesia, #1 private Indonesian oil company
115.1

48.4
43.4

10.2 7.7 4.1 2.3

Chevron Pertamina CNOOC Medco Petronas PetroChina KNOC KUFPEC

2008 gross oil production of publicly-listed Asia Pacific E&P companies

113.1 mbopd

Medco is the #5 publicly-listed oil company in Asia Pacific, #2 in Southeast Asia

68.2
53.1
46.5 43.4 39.2

17.1 13.1
5.3 5.3 3.1

Woodside PTTEP CNOOC Santos Medco Talisman Newfield Beach EMP Salamander Lundin
Exploration Petroleum

Source: WoodMackenzie
30
 Industry Positioning: Competitive Cost Structure

“PSC’s cost recovery structure mitigates industry-wide

2008 firm-wide lifting costs of Asia Pacific E&P companies cost escalation. Medco has been relatively cost-efficient
$/boe and is one of the lowest cost oil companies in Indonesia.”

 Lifting costs leader amongst Asia Pacific oil producers.

$21.0  Competitive cost structure enables Medco to:

$15.0 $15.9
$9.3 $9.7 $10.5 $11.2 $11.5  Extend life of its fields
$8.2
 Compete for bidding for new assets
 Compete more effectively in a lower oil price
environment
 Obtain higher operating margins and lower capital
costs for growth

2008 lifting costs for major operators in Indonesia

$/boe

$28.9

$15.3 $15.7 $16.3 $17.8 $17.9

$13.8
$8.9 $9.0 $9.3
$5.5 $5.5 $5.7 $8.2

PremierOil Talisman EMP Medco Salamander Pacific CNOOC KNOC Elnusa Lundin Chevron Mubadala KEC Petronusa

Source: WoodMackenzie
31
Energy Mix Conversion Table

32
Energy Price Parity Chart

4.00

Oil
3.50 Gas
LNG
3.00 LPG
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
Note: Oil is the base for Energy Price Parity acting as the denominator to other types of energy

33
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.

34
Notes

35
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: nusky.suyono@medcoenergi.com

Nugraha Adi
M. +62-819 815 815
Email: nugraha.adi@medcoenergi.com

Website: www.medcoenergi.com