Medco, Santos make deal in relation to acquisition of Novus

Publicly listed oil company PT Medco Energi International Tbk said on Monday it had entered into an agreement with Australian-based Santos Limited in relation to the takeover bid for Novus Petroleum assets.

Medco said Santos had agreed to pay US$110.0 million for an 18 percent interest in the Brantas Production Sharing Contract (PSC), a 9 percent interest in the Kakap PSC, both in Indonesia, and 100 percent of Novus? interest in Australia?s Cooper Basin.

Novus has a 25 percent interest in the Kakap PSC (operated by Star Energy) offshore West Natuna sea and a 50 percent interest in the Brantas PSC (operated by Lapindo) in East Java.

Medco said the deal with Santos included a US$3.5 million of contingent consideration linked to reserves upside in the Wunut field at Brantas PSC.

Medco further said it had also agreed to a separate arrangement with Dubai-based Silk Route Investments in respect of Novus? interests in the U.S., Middle East and Pakistan.

Medco may finally win the assets of Novus (an Australian energy company) after rival bidder Sunov decided not to raise its offer for the company. Medco recently increased its offer for Novus shares to A$1.90 per share, while Sunov's offer was only A$1.85 a share.(robert)