Delivering Energy

Investor Update – 9M16 Performance

October 2016 | www.medcoenergi.com

 Table of Content
Main Business Activities 3
2016 Milestones 4
9M16 Performance 5
2016 Guidance 7
Board Priorities 8
Cost and capital efficiency, operational effectiveness 9
Well balanced 2P reserves 10
Healthy project pipeline 11
Block A Aceh Phase I – Gas Development 12
Sarulla Phase I – Geothermal Power Development 13
Senoro Phase II – Gas Development 14
Leveraging MedcoEnergi’s strong domestic position … 15
Overview: PT Newmont Nusa Tenggara 16
Overview: South Natuna Sea Block B 17
Conclusion 18

The following presentation has been prepared by PT Medco Energi Internasional Tbk. (the “Company”) and contains certain projections, plans, business strategies,
policies of the Company and industry data in which the Company operates in, which could be treated as forward-looking statements within the meaning of applicable
law. Such forward-looking statements, by their nature, involve risks and uncertainties that could prove to be incorrect and cause actual results to differ materially from
those expressed or implied in these statements. The Company does not guarantee that any action, which may have been taken in reliance on this document will bring
specific results as expected. The Company disclaims any obligation to revise forward-looking statements to reflect future events or circumstances.

Cover photo: Senoro Downstream Donggi Senoro LNG plant – First shipment of LNG
Main Business Activities
MedcoEnergi is a publicly listed, integrated energy company with significant interests in Power Generation and support
services alongside its core Oil & Gas Exploration & Production activities in Indonesia, the Middle East, North Africa and the US.

3
2016 Milestones
Obtained shareholders approval to acquire an effective
41.1% interest in PT Newmont Nusa Tenggara. The
transaction is expected to close in October 2016.

Signed SPA with ConocoPhillips to acquire a 40%

interest in the South Natuna Sea Block B PSC, along
with the West Natuna Transportation System gas
transportation and Onshore Receiving Facilities.

Divested 100% participating interest in Bawean PSC.

Closing is expected in Q4.

Awarded a 10 year extension of the Lematang PSC and

concluded the acquisition of Lundin’s Lematang equity
which will potentially increase reserves by 41 bcf.

Acquired Japex’s 16.67% interest in the Block A Aceh

PSC. Completion is expected in Q4, subsequently Medco
will own 58.33% operating interest in the block.

9M16 gas sales almost doubled, operational cash cost

per unit reduced by 28% to $7.9/BOE. Continued focus
upon efficiency and effectiveness.

Raised Rp 2.5 Trillion from a Rp 5 Trillion Shelf-

Registered IDR bond program in two phases. Recent
Senoro Upstream Gas – Central Processing Plant
issuance was heavily oversubscribed.

4
9M16 Operational Performance
Production MMBOEPD
63.9
58-61
55.6

30-32 34.1
24.0
Oil and Gas E&P 9M15 9M16 ∆%
Production (including service contract)
31.6 28-30 29.8 Oil, MBOPD 31.3 29.8 (4.8)
Gas, MMSCFD 125.3 199.2 59.0
Total Oil and Gas, MBOEPD° 52.7 63.9 21.1
2015A 2016G* 9M16 Lifting/Sales
Gas
Oil Lifting, MBOPD 21.1 20.0 (5.0)
Oil 2P Reserves MMBOE Gas Sales, BBTUPD 113.7 207.0 82.0
277.1 284.2 Oman Service Contract , MBOPD 8.6 8.2 (5.1)
262.6 Average Realized Price
Average Oil Price, US$/barrel 53.5 39.5 (26.1)
140.9 145.5 Average Gas Price, US$/mmbtu 5.5 4.2 (23.4)
129.4
* Excluding acquisitions
° Including Oman Service Contract, excluding own used fuel

136.2 138.7 133.2

2015A 2016G* 9M16

5
9M16 Financial Performance

Profit & Loss (US$ mn) 9M15 FY15 9M16 HoH∆% Balance Sheet (US$ mn) 9M15 FY15 9M16 HoH∆%
Revenue 418.1 628.5 416.9 (0.3) Cash & cash equivalents 224.1 463.2 181.0 (19.2)
• Oil and Gas 385.1 574.4 382.3 (0.7) Investments 646.7 532.3 906.7 40.2
• Non Oil and Gas 32.9 54.1 34.6 5.1 Fixed Assets 1,268.1 1,510.7 1,487.9 17.3
Production & Lifting Costs 122.9 215.3 122.8 (0.1) Total Assets 2,558.1 2,909.8 3,013.4 17.8
Gross Profit 165.4 208.3 159.5 (3.5) Total Liabilities 1,726.3 2,208.2 2,266.8 31.3
S, G & A 84.0 118.7 73.0 (13.1) • Bank Loans 628.5 1,087.7 1,048.0 66.7
Operating Income 81.3 89.5 86.5 6.4 • Capital Market Debt 472.2 492.5 654.7 38.7
EBITDA 165.2 216.8 181.5 9.9 • Other Liabilities 625.6 628.0 564.1 (9.8)
Net Income (51.1) (188.1) 22.3 n.m. Equity 822.1 696.5 742.0 (9.7)

Financial Ratios (x) 9M15 FY15 9M16 Financial Ratios (x) 9M15 FY15 9M16
Gross Margin 39.6% 33.6% 38.3% Current Ratio 1.82 1.98 1.84
Operating Margin 19.5% 14.2% 20.8% Debt to Equity 1.34 2.27 2.29
EBITDA Margin 39.5% 34.5% 43.5% EBITDA to Interest 2.95 2.80 2.27
Net Margin -12.2% -29.9% 5.3% Net Debt to EBITDA 3.98 5.15 6.29

6
 2016 Guidance
357
23 Retire Retire
315 Maturing Debt
Capex Debt Capex Debt
253

180 Refinanced 124 150 – 180

100 – 150
334 100-145
87 $70
135 Retired 129 /bbl
$60
/bbl
2014A 2015A 2016G* 9M16 2016G 2017G 2018G
Capex Sensitivity
US$ mn US$ mn
15.3 Unit Operating Cost° Production
13.3
US$/BOE MBOEPD 63.9
G&A 4.0 56.0 55.6 58-61
4.4 ≤ 10
24.4 30-32 34.0
7.9
Gas Gas 24.0
2-3

Lifting Cost 11.3 3.2

8.9 Oil 22.9 23.0 21-22 21.7
6-7 Oil
4.7
Oman 8.7 8.6 7-8 8.2
2014A 2015A 2016G* 9M16 2014A 2015A 2016G* 9M16
7
° Cash cost without Oman Service Contract | * Excluding acquisitions
Board Priorities

• Cost and capital efficiency,

operational effectiveness

• Optimum project cycle time with

renewed focus upon value and
President Director
Director delivery
Chief Executive Officer
Hilmi Panigoro
Roberto Lorato
• Portfolio rationalization to meet
return and profitability benchmarks

• Leveraging MedcoEnergi’s strong

domestic position through focused
acquisitions and contract
Director Director Director
extensions
Chief Financial Officer Chief Human Capital & Chief Operating Officer
Business Support
Anthony Mathias
Amri Siahaan
Ronald Gunawan
• No compromise on safety

8
Cost and capital efficiency, operational effectiveness
Improving unit cash cost°
16 15
13
G&A Cost 4 4 • Sustainable reductions in our
4 <10 cash cost structure
2-3 7.9

Lifting Cost 11 11
3.2 • Manage base production decline
9
6-7 and reduce downtime
4.7
US$/BOE
2013A 2014A 2015A 2016G* 9M16 • Deferral and renegotiation of
exploration commitments
Managing capital delivery
357
315
• Selectively capture the benefits
288 of further supplier market
deflation
100-145
Capex
87

US$ mn
2013A 2014A 2015A 2016G* 9M16

9
° Cash cost without Oman Service Contract | * Excluding acquisitions
 Well balanced 2P reserves
2P Reserves – 262 mmboe
133 129
11.0% Foreign • Large well balanced 2P reserves
62.5% backed by a strong resource
17 base
89.0% Domestic
Reserve
Life Index
37.5% • Monetize our resources through
capital discipline and project
Oil Gas execution

Resources > 350 mmboe • Prioritize domestic projects for

early cash generation
Oil Foreign
24.1% 24.0% • Focus on lower risk, cost
effective near field resources
and exploration
75.9% 76.0%
Gas Domestic
10
Reserves and resources in mmboe, Reserve life index in years
Healthy project pipeline

Oil Gas Power

POD Submission 2016

Matang
2012 Phase I COD
Q1 2018
Iliran High
Telisa North
Semoga Temelat
Kuala 2009
Langsa Ijen Temelat Block A
1992 Geo- 2011
Arung
2013
Thermal Sarulla
Simeng- Geo-
Tunisia garis Thermal
2013 Libya Cibala-
2014
2007 pulang
Libya Mini
2007 Hydro

Senoro II
Phase I COD
FEED Q4 2016
Completed
2016

Appraise Select Define Execution Production

11
Block A Aceh Phase I – Gas Development
Monetizing 237 TBTU of gas and 5.17 MMBO of condensate for domestic market
• EPC-1 contract of US$240 million awarded to
JEC, a consortium of PT JGC Indonesia and PT
Encona Inti Industri. EPC-2 contract of IDR 279.5
billion awarded to PT Kelsri.

• Engineering, procurement, and construction

work is progressing well. Critical land
acquisition completed.

• Total project investment until first gas is US$540

million. First gas Q1 2018.

• GSA with Pertamina, for delivery of 198 TBTU

over 13 years (58 BBTUPD).

• Proactive engagement with local community

(hospital handed over).

• Additional gross potential resources of up to 1.6

TCF from Kuala Langsa and Matang.
Ownership Structure:
• MedcoEnergi 41.67% (Op)
• KrisEnergy 41.66% • Completion of Japex’s 16.67% interest
• Japex 16.67% acquisition is expected in October. Thereafter
Medco will hold 58.34% operating interest.
CPP area site preparation progress
12
Sarulla Phase I – Geothermal Power Development
The largest single-contract geothermal power project in the world
• Located in Tapanuli Utara district, North
Sumatra with contracted capacity of
3X110MW.
• 30 years Energy Sales Contract with PT PLN
with Take or Pay 90% capacity factor. Joint
Operating Contract with PT PGE.
• Ownership:
₋ MPI (18.9975%),
₋ INPEX (18.2525%),
Production Well Drilling Progress
₋ ORMAT (12.75%),
₋ ITOCHU (25%),
₋ KYUSHU (25%)
• Total project investment cost of US$1.6 billion.
• Secured project financing of US$1.17 billion for
20 years with JBIC, ADB, and 6 commercial
banks.
• As of September 2016 Phase I and Phase II
power plant construction progress have
reached 95.8% and 51.8% respectively.
Power Plant Construction Front View

13
Senoro Phase II – Gas Development
Enhancing the Senoro Upstream/Downstream LNG Value Chain

1 Mtpa 1 Mtpa Chubu Electric

(Japan) • Senoro Phase I existing proven
PPGM
(Matindok) 250 0.3 Mtpa
reserve 1.4 TCF, COD in June 2015.
Kyushu Electric
(Japan)
85
105
DSLNG • Producing 323 mmscfd as of
Korea Gas
(Korea) 9M16.
1 Mtpa 0.7 Mtpa

415 MMSCFD
20 • Potential upside from North and
PLN LNG Marketing:
South Senoro 500 BCF – 1 TCF.
5
• 37 cargos production capacity p.a.
JOB PMTS 310 • 125,000m3 cargo load size per vessel • Senoro Phase 2 projected to
• 12 cargos shipped in 2015, 37 cargos
(Senoro) 55
Fertilizer planned in 2016
increase production to above 400
mmscfd.
Upstream Downstream LNG Buyer
(Gas Producer) (Gas Buyer)

Structure Upstream WI Downstream

MedcoEnergi 30% 11.1%
Pertamina 50% 29.0%
Mitsubishi & Kogas 20% 59.9%

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Leveraging MedcoEnergi’s strong domestic position …

• Strong track record in obtaining PSC

extensions (2001 – Rimau, 2010 – South
Sumatra, Block A, Bawean, 2016 –
Lematang).

• With commodity prices projected to

remain low, there will be opportunities to
acquire domestic resources.

• Medco will create value by evaluating

each opportunity against our return and
profitability benchmarks.

• The acquisition of PT Newmont Nusa

Tenggara and South Natuna Sea Block B
are excellent examples of how targeted
domestic resource acquisitions can
create value for the Company’s
stakeholders.

15
Overview: PT Newmont Nusa Tenggara
Leveraging MedcoEnergi’s strategic position for value creation
• Transaction closing expected in October 2016

• 87,000 ha Copper & Gold mine located SW

Sumbawa Island, W. Nusa Tenggara Province, 550
m above sea level. 81 km from Mataram town

• 4th generation CoW signed 1986, for 30 years

operation from start of production in 2000

• Producing Mine
Batu Hijau Mine Copper Gold
Proved Reserves 2.6 bil lbs 2.7 mil oz
Resources 10.3 bil lbs 13.9 mil oz
2015 Production 239.6 mil lbs 0.3 mil oz
Facilities 120,000 tpd processing facility, grinding
facility, pipe assembly facilities for tailings
management, warehousing, 158 mw coal-fired
powerplant, port with ferry terminal, air
services and town site for housing and school

• Potential Development: Elang with est. resources

12,945 mil lbs copper, 19.7 mil oz gold with
potential to produce 300-430 mil lbs copper and
0.35-0.60 mil oz gold annually

Batu Hijau mine

16
 Overview: South Natuna Sea Block B (SNSB)
Leveraging MedcoEnergi’s strategic position for value creation
• An offshore PSC located in the South Natuna Sea
with world class operating scale and large
hydrocarbon base (gross 3P resources > 569 mmboe)
• Current Ownership Structure:
• MedcoEnergi : 40% (Operator)
• INPEX : 35%
• Chevron : 25%
• Current gross production: 266 mmcfd gas, 5 kboepd
LPG, 19 mboepd oil/condensate (28 mboepd net)
• SNSB is Operator of the PSC and the West Natuna
Transportation System (WNTS), a 650 km natural gas
pipelines, which services gas sales from 3 producing
PSCs in the South Natuna Sea to the Onshore
Receiving Facility in Singapore
• Strong net cash flow linked to attractively priced gas
sales agreements into premium markets
• In place gas-liquids processing, storage and export
infrastructure with additional capacity for future
expansion
• Best in class Health, Safety, and Environmental
Records
• Highly experienced and proven operating team of 800
employees and 320 contractors

17
Source: ConocoPhilips Oct 2015
Conclusion

• Increased production in 9M16 by 21% to

63.9 mboepd
Delivering • 9M16 Revenue and EBITDA increased despite
in 2016 lower average realized price of oil and gas
• Reduced oil and gas cash cost per BOE by 28%
• Full year outlook on track with 2016 Guidance

• US$181.5 million EBITDA as of end of 9M16

Solid • US$10/bbl oil price increase generates additional
Liquidity $45 million cash available for debt service
• Raised Rp 2.5 Trillion from a Rp 5 Trillion Shelf-
Registered IDR Bond program

• Added value from targeted domestic acquisitions

and portfolio renewal; management focused now
Looking on integration
Forward • Healthy project pipeline to monetize resource
base and organic reserve replacement
• Sustainable reductions in our cash cost structure

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Company Address : Investor Relations:

PT Medco Energi Internasional Tbk. Sonia Ayudiah

The Energy Building 53rd Floor Head of Investor Relations
SCBD Lot 11A Email. sonia.ayudiah@medcoenergi.com
Jl. Jend. Sudirman, Jakarta 12190
Indonesia A. Nugraha Adi
P. +62-21 2995 3000 Investor Relations
F. +62-21 2995 3001 Email. nugraha.adi@medcoenergi.com

Website : www.medcoenergi.com