Medco obtains loans from ANZ, Mandiri in acquisition of South Natuna Sea Block B PSC

By Thomas Sembiring

IDX-listed energy company PT Medco Energi Internasional Tbk said that ANZ Bank and Bank Mandiri have provided loans to help finance the recent acquisition of interest in South Natuna Sea Block B PSC, Riau Archipelago province.

?Funding for the acquisition comes from ANZ, Mandiri, and company internal funds,? said Medco President Director Hilmi Panigoro on Thursday.

He said that ANZ provided US$150 million loan, but did not disclose the size of loan from Bank Mandiri. The funding requirement for the acquisition is estimated at $239 million, he said.

Medco announced on November 17 it has completed the acquisition of ConocoPhillips Indonesia Inc Ltd (CIIL) and ConocoPhillips Singapore Operations Pte. Ltd. (CSOP), both of which are subsidiaries of ConocoPhillips (COP).

CIIL, which is the operator of the South Natuna Sea Block B PSC with a 40 percent interest, is also the operator of the West Natuna Transportation System (WNTS). CSOP operates an onshore receiving facility in Singapore.

Hilmi said that Medco will try to maintain stable production of the newly acquired oil and gas asset. He added that with the acquisition, Medco will have a combined production capacity of 90,000 boepd, assuming that the South Natuna Sea Block B PSC can contribute around 28,000 boepd.

Editing by Reiner Simanjuntak