Medco says Indian Oil to buy stake

Indian Oil Corp (IOC) is close to buying a stake in Indonesian oil and gas firm PT Medco Energi Internasional Tbk, a Medco official wasq uoted by Reuters on Wednesday.

India's largest oil refiner is finalising a deal to buy the stake in Indonesia's biggest independent exploration and production company from Thailand's PTT Exploration and Production PCL (PTTEP) and Credit Suisse First Boston, the official said.

The comment confirmed media reports about a possible stake sale although Medco declined to specify the size and price of the deal. Some media have reported IOC may buy a 40 per cent stake in Medco in a deal worth some $600 million, although the company's market capitalisation is less than $500 million.

"The stake sale in New Links is done by PTTEP and CSFB to Indian Oil Corp. But the size is not clear because the deal has yet to be finalised," Medco's chief financial officer Sugiharto told reporters.(*)