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PT Mega Energi Tbk (PTME) is an upstream holding public company with several subsidiaries that manage oil and gas block assets in Indonesia. In 2018 PTME acquired oil-producing assets K and established the ME-K Company. At that time, the oil price was $80/barrel for purchase, but the sudden oil price crisis in 2020 changed the plan. It was PTME's strategy for keeping K's assets and meeting the commitments made to the bank. In 2018 PTME secured financing from a bank to purchase K assets and launch ME-K. At that time, the cash flow of ME-K could service this debt, but as the oil price fell, simply maintaining business operations became impossible for the Company. ME-K had to reduce operational expenses and delay expansion plans. Still, as a result, the Company's cash flow performance wasn't as strong as it was. If ME-K can't pay the loan, PTME could lose its rights to ME-K. For this reason, the Company must refinance to pay off the prior loan. PTME has another subsidiary. ME-B manages asset B, which sells gas and is unaffected by the oil price decline. ME-B shall submit for ME-K loan refinancing. Due to the high business risk in the oil and gas industry and the ME-B's lack of assets with more value than the previous loan, the Company submitted a new loan scheme, Reserve-Based Lending (RBL). The RBL method can make the bank feel more secure because the bank hold the company’s entitlement accounts for oil and gas sales. The bank shall do a redetermination every six months to review the Company's performance.