Medco sells Middle East assets for $65 million

Publicly listed oil and gas firm PT Medco Energi Internasional Tbk reported Thursday it had signed a Share Purchase Agreement with Meridian Oil & Gas (Middle East) Limited to sell 100 percent shares in Novus Middle East Ltd for US$65 million.

Novus Middle East holds a 40 percent interest in Block B (Bukha), an oil and liquefied petroleum gas (LPG) producing block in Oman. Meanwhile, the company also owns interests in three exploration blocks in the same country and another in the United Arab Emirates.

MedcoEnergi said the completion date is no later than July 31.

The company also said it would use the proceeds from the sale to repay its outstanding loans to UOB and OCBC of Singapore, which were previously used for the acquisition of Novus Petroleum Limited?s shares last year. (robert)