MG Oil
 | |
| Public limited company | |
| Traded as | MGO |
| Industry | Oil and Gas |
| Founded | 1973 in Jematang, Tambangan, Pemecutan |
| Headquarters | Jematang , Pemecutan |
Key people |
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| Products | Petroleum, Natural Gas, Motor fuels, Lubricants, Petrochemicals, Plastics |
| Services | Service stations |
| Revenue |  $76 billions (2019) |
| Data unavailable | |
| Data unavailable | |
| Total assets | $257 billions |
Number of employees | ~30,000 |
| Subsidiaries | MG Power |
MG Oil or officially Mandara Giri Oil plc is a Pemecutan-based oil and gas company headquartered in Jematang, Tambangan. It is the only oil and gas company in Pemecutan. Begin as a state-owned company, MG Oil has expands themselves beyond the expectation. It is one of the leading oil company in Melayu Archipelago.
History
Pemecutan oil deposit was found unexpectedly in the late 1960's. During the exploration of possible new mineral deposit in southern Gerenceng Mountain Range by Gerenceng Mining's engineers, they found a sizeable amount of oil and gas deposit underneath the surface. A thorough and detailed research was commenced afterwards. As oil and gas are consider a valuable mineral, Yahya Bagus Sudrajat, Minister of Energy and Natural Resources in that time suggested to established a state-owned company to manage oil and gas exploration and processing. The proposal was passed by both houses of Paruman Agung, Pemecutan Parliament. And MG Oil is officially established in 1973.
The first exploration was begin in southeast armed of the mountain range where the first deposit were discovered. After several months of drilling, the first oil were successfully taken out from the oil well. And Pemecutan officially become an oil producer country. With around 100,000 barrels a day during the time, Pemecutan able to export most of their oil.
In early 1980, MG Oil opened their first refinery center in Pedungan. This moved was taken to lifted the value of oil that being exported. Pemecutan then not only exporting petroleum but also motor fuels and lubricants. In 1984, the second oil blocks were discovered in eastern Titih Highland. The exploration began afterwards. This new oil discovery increase the country oil productions by 100%. And in late 1980's, a sizeable amount of deposit are discovered on Jematang offshore.
The new technology are needed for offshore oil exploration. The government once again injected capital to MG Oil for this new project. It was not until mid 1990's that offshore oil rig begin their operations. In that time, Pemecutan oil production have reached 200,000 barrels per day. In late 1990, the company also begin the extraction and processing of natural gas.
Beginning the new millennium, MG Oil is given the privilege to explore Sulangai Block, another offshore oil block that discovered on southeast of Sulangai. The exploration was quite a controversy as the local resident afraid the oil exploration will impacted negatively to the tourism and fishery industry in Sulangai. MG Oil representatives talks intensely with Sulangai Municipal Government and Petang Islands State Government on the environmental issue. After a long and heated talks, both government agreed to give their permit for MG Oil exploration although in limited area.
In 2007, MG Oil opened their new refinery factory near Port of Jematang. The decision was taken to ease distribution from their offshore oil rig to the mainland. A year later, MG Oil chairman decided to do an IPO. The decision was already permitted by Pemecutan Government and Parliament. In their first IPO, only 25% of the total shares were being release to the market. The company name then officially change into MG Oil plc.
In 2010, MG Oil won the tender for offshore oil exploration in northern coast of Kanginan. The new exploration will maintain the production capacity of MG Oil which already declining from early 2000. The company finally closed their refinery in Lumintang in late 2010. The crude oil from Titih Highland block are distributed to Jematang Refinery Center. Jematang Refinery Center are also being expanded to increase their production capacity. The company also begin investing in renewable energy. Their subsidiary, MG Power is officially in operation from 2013. This subsidiary focused on renewable energy especially the production of solar panel and wind turbine.
Operations
Pemecutan
- Gerenceng Southeast Oil Wells
- Titih Highland Oil Wells
- Jematang Offshore Oil Rigs
- Sulangai Offshore Oil Rigs
- Mambal Offshore Oil Rigs
- Pedungan Refinery
- Jematang Refinery Center
Melayu Archipelago
- Springmont, in June 2020, a joint venture agreement is signed between MG Oil and Montian Oil & Gas Consortium in which MG Oil will buy out all Montian oil production and refine it in MG Oil refinery in Jematang.
- Sharktail, MG Oil have become the sole oil supplier to the nation.
Partnerships
- Mandala Shipping Co.
- Montian Oil & Gas
- Springmont OB Shipping
Controversies
- Sulangai Offshore oil exploration