Medco cancels sale of some of E&P assets

IDX-listed energy firm PT.Medco Energi Internasional Tbk has canceled plan to sell stake at two oil, gas assets in Sumatra and Java after failed to find suitable buyers, a company official said.

Chief Commissioner Hilmi Panigoro was quoted by Bisnis Indonesia as saying that Medco canceled the sale to 15 percent interest in Rimau PSC, onshore South Sumatra to strategic partner. Medco has 95 percent interest in Rimau.

Medco also canceled the sale of its entire 22.5 percent economic interest in Jeruk oil discovery, Sampang PSC, offshore East Java.

Hilmi said the company is in final stage of negotiation to sell its entire 18.75 percent interest in Kakap PSC, offshore Natuna to foreign buyer.

The sale of E&P assets is part of Medco?s plan to shed non-core assets, finding strategic partners for its operated blocks and raise funds to finance its projects.

The company had earlier sold its 25 percent interest in Tuban JOB, onshore East Java to Pertamina for US$42 million. (*)