Medco sets sights on IPO in Singapore, London markets

Indonesia?s largest private oil and gas company PT Medco Energy Internasional plans to offer up to 45 percent of its stake on the Singapore and London stock exchanges over the next six months, via an initial public offering (IPO), The Jakarta Post newspaper reported on Thursday quoting the company?s founder as saying.

Arifin Panigoro, of the Panigoro family, who is the founder of the company, said the IPO plan would commence until after the family completed the acquisition of a 59.9 percent stake of New Links Energy Resources in Medco, which should be concluded later this month.

?As part of the company?s long-term expansion program, we will launch IPOs in London and Singapore in the next six months, because the price here in Jakarta is too cheap for us,? Arifin told The Jakarta Post.

He was upbeat about the prospects of the offering, betting on recent findings of new oil reserves to lure international investors.

?Aside from Santos oil, we also found a new oil block with a large amount of reserves in Libya, which makes our shares even more attractive,? Arifin remarked.

Elsewhere, the Panigoro family is now in the process of buying a 59.9 percent stake in New Links that currently controls 86 percent of Medco, at a reported price of $400 million. (*)

Total E&P Indonesie faces bankruptcy claim from former contractor

Source: Bloomberg

East Kalimantan gas producer Total E&P Indonesie is concerned an Indonesian court may order suspension of the company's business after former contractors claimed Rp 64 billion (US$7.2 million) in unpaid bills, Total's lawyer was quoted as saying by Bloomberg .

PT Istana Karang Laut and PT Sanggar Kaltim Jaya filed a bankruptcy petition in the Jakarta Commercial Court on Jan. 14, said Todung Mulya Lubis, Total's lawyer. The court hearing started on Wednesday. Total denies owing the contractors money.

"They did the work beyond what they were ordered to do because they unilaterally altered the scope of work," Todung told reporters in Jakarta. "We never agreed to any change of the work order."

Total, the biggest gas producer in Indonesia, signed a contract with Sanggar Kaltim in 2001 to build platforms and gas processing plants in the Tunu field in East Kalimantan. Sanggar later subcontracted the work to Istana Karang.

The two Indonesian contractors in 2002 asked Total to pay a bill that was higher than what had been agreed, Todung said.Total paid the billable amount on the works that were agreed, refusing to pay any more, Todung said. (*)