Medco hopes to complete sale of upstream assets Q3

IDX-listed energy firm PT. Medco Energi Internasional Tbk said on Friday that the planned sale of its three non-operating upstream assets had drawn around 30 prospectove buyers and the company is planning to farm-out stake in four more operated assets.

CEO Hilmi Panigoro told reporters that due diligence had on the assets had now commenced and he hoped that the sale could be closed third quarter of 2008.

He did not give interested buyers? names.

The assets that Medco had put on sale are: 18.75 percent interest in Kakap PSC in Natuna Sea, 25 percent in Tuban JOB onshore East Java, and 22.5 percent in Jeruk discovery in Sampang PSC offshore East Java.

Panigoro said the company planned to further farm-out 15 percent interest in its 95-percent owned maturing oil production block Rimau PSC onshore South Sumatra, which is one of the company?s major producing assets to a company that has EOR technology. Medco will also put on sale 30 percent of sate in Bawean block offshore East Java where it has 65 percent interest; 25 percent interest at Lematang PSC onshore South Sumatra where it has 75 percent interest. The company also plans to farm-out its entire 80 percent interest in Langsa PSC offshore North Sumatra.

He did not say when the farm-out process would be started.

Panigoro said the proceed from the sale will be used to strengthen the company?s equity to finance its multi billion dollar projects including Senoro LNG project in Central Sulawesi, gas project in Aceh Block A and geothermal power plant .(bernard)