Inpex to sell interest in South Natuna Sea Block B to Medco
Monday, March 27 2017 - 01:02 PM WIB
Inpex Corporation announced Monday that it has decided to sell all its shares in Inpex Natuna Ltd., its wholly-owned subsidiary that holds a 35 percent participating interest in South Natuna Sea Block B in Indonesia, to PT Medco Daya Sentosa (Medco), a subsidiary of IDX-listed energy company PT Medco Energi Internasional Tbk.
Following its acquisition of a participating interest in the South Natuna Sea Block B in 1977, Inpex began producing crude oil in 1979 and natural gas in 2001. Thereafter, crude oil, natural gas and liquid petroleum gas (LPG) development and production activities took place at multiple oil and gas fields in the block, contributing to Inpex's continuous enhancement of E&P activities.
Inpex said in a statement that after almost 40 years since the start of oil production, the contribution of Inpex Natuna in terms of income and cash flow is expected to become relatively limited. ?Hence with a view to optimize the group?s global asset portfolio, Inpex has decided to sell all its shares in Inpex Natuna Ltd,? the statement said.
In terms of the impact on the company?s consolidated financial forecasts for the year ending March 31, 2017, Inpex said it expects an impact to the net income attributable to owners of parent of around 13.5 billion yen mainly as a result of reporting approximately 16.0 billion yen as non-operating expenses.?
However, the company said the impact has already been factored into the revised consolidated financial forecasts for the year ending March 31, 2017 announced on February 10 as a loss associated with asset portfolio reviews, etc. ?Consolidated financial forecasts will therefore not be revised at this time,? it added.
South Natuna Sea Block B is located 1,200km north of Jakarta, Indonesia in the Natuna Sea where the water depth is approximately 50-55 meters. The average production rate for the Block for the year 2016 was approximately 20,000bbl/d of crude oil, 197MMscf/d of natural sales gas and 6,000bbl/d of LPG. The block?s participating interest ratio prior to the sale of Inpex Natuna shares is as follows: Inpex 35 percent, Medco E&P Natuna 40 percent (operator) and Chevron 25 percent.
Editing by Reiner Simanjuntak