10 investors vying for Medco assets in U.S.

At least 10 American investors are vying for four oil and gas blocks in the United States formerly belonging to Novus, the Bisnis Indonesia newspaper reported in its Wednesday edition.

These blocks are now owned by the publicly-listed oil and gas firm PT Medco Energi Internasional Tbk.

Medco’s president Hilmi Panigoro said Tuesday that the above investors are currently studying the prospects of the four blocks.

“They (investors) are currently opening our data room. We have appointed Credit Suisse First Boston (CSFB) as our financial advisor for this sale of assets,” Hilmi said.

According to Hilmi, Medco is expecting the price value of these four blocks at more than US$200 million.

Hilmi declined to disclose the identity of the investors.

Last month Medco’s shareholders approved the plan to sell the assets belonging to Novus in Australia, U.S, United Arab Emirates. Medco acquired Novus several months ago.

Medco financial director Sugiharto said the proceeds of the sale will be used to repay the some part of company’s $340 million debt.

Medco is expecting that the divestment of the four blocks will be completed by end of this year. (*)