Medco plans to acquire six oil and gas blocks

IDX-listed energy firm PT Medco Energi Internasional is exploring the possibilities of acquiring stakes in six oil and gas blocks in Indonesia as well as in the Middle East and North African (MENA) countries, The Jakarta Post reported on Monday.

?We are evaluating two blocks in Indonesia and about four blocks in MENA countries. All will depend on the commercial assessment,? Medco President Director Lukman Mahfoedz said.

According to Lukman, owners of the blocks have invited Medco to jointly develop the oil and gas blocks.

Medco has expanded overseas for years. The company recently acquired a 25 percent stake in Block 9 in Yemen. The block has gross reserves of 58.6 million barrels of oil (MMBO) and is expected to achieve production of around 14,500 barrel of oil per day (BOPD).

The acquisition of Block 9 in Yemen is expected to contribute around US$22 million in EBITDA (earnings before interest, tax, depreciation and amortization) to Medco this year, according to Lukman.

Besides Yemen, Medco currently operates in Oman through its wholly owned Medco Oman LLC, which holds a 55 percent participating interest in Karim Small Fields, in the United States and Libya.

Finance Director Syamsurizal Munaf has said that, in acquisition, Medco sought for fields that could produce up to 5,000 barrel of oil equivalent per day (BOEPD).

The company estimated that next year?s production would be at about the same level of this year?s 65,000 BOEPD. The company projected that production would increase significantly in 2014 and 2015, following completion of big development projects and acquisitions. (*)