Medco, Mitsubishi in S. Sumatra crude sales deal
Tuesday, December 23 2008 - 10:32 AM WIB
IDX-listed energy firm PT.Medco Energi Internasional Tbk announced on Tuesday it had signed deal to sell all of its net crude entitlement from Kaji-Semoga field in Rimau PSC, onshore South Sumatra Sumatra to Petro-Diamond Pty, a wholly-owned unit of Mitsubishi Corp.
The appointment of Mitsubishi was conducted through open but limited tender, the company said. Mitsubishi is the holder of 39.4 percent shares in Encore Energy Pte.Ltd, which controls 50.7 percent of Medco?s shares.
Price of the crude would refer to the price index of Indonesia Crude Petroleum of Sumatra Light Crude determined by Indonesian Ministry of Energy and Mineral Resources with certain premium.
Under the deal, Medco will sell Kaji-Semoga crude to Petro-Diamond for the period of three years from January 2099 to December 2011.
Mitsubishi will pay upfront fee of US$130 million to Medco, which would be allocated for general corporate purpose, the company said. (alex)