Medco sells Bawean PSC to Hyoil

IDX-listed energy company PT Medco Energi Internasional Tbk announced that it has sold its entire ownership in Bawean PSC, an oil producing asset located off the coast of East Java.

Medco Energi said in a statement Monday that together with subsidiary Medco Bawean (Holding) Pte Ltd, they have entered into a Sale and Purchase Agreement dated September 1, 2016 with Hyoil (Bawean) Pte Ltd to divest 100 percent interest in the Bawean PSC through the sale of shares in Camar Resources Canada Inc (CRC) and Camar Bawean Petroleum Ltd (CBPL).

First-half 2016 production from Bawean was approximately 670 bopd. The company said it has operated the Bawean PSC since 2004 through its holding in CRC. The Bawean PSC will expire in 2031 following the 20 year contract extension granted by the Government of Indonesia in 2010.

?This divestment is aligned with our plans to rationalize our portfolio in order to focus on higher growth assets. The divestment will create value for both Medco Energi and Hyoil shareholders. Hyoil is better placed to further explore and develop Bawean PSC and will do so with the support of an experienced team,? said CEO of Medco Energi, Roberto Lorato in a statement on Monday.

Editing by Reiner Simanjuntak