Medco provides debt guarantee for subsidiary
Friday, January 20 2017 - 02:59 AM WIB
IDX-listed energy company PT Medco Energi Internasional Tbk has recently signed a deed providing guarantee to the US$230 million debt obtained by its subsidiary Medco Natuna Pte Ltd from Bank Mandiri.
The debt will be used to refinance debt obtained last year from a foreign bank, Medco said in a filing with the Indonesia Stock Exchange on Thursday.
Medco Natuna is a company set up to facilitate the acquisition of South Natuna Sea Block B PSC, in Riau Islands Province, last year. The company obtained loans from Bank Mandiri and ANZ Bank to help finance the acquisition worth US$239 million, of which ANZ provided $150 million loan.
Medco on November 17 of last year 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.
Editing by Reiner Simanjuntak