Medco shareholders support Novus assets sale

Shareholders of PT Medco Energi Internasional Wednesday approved a plan to sell some of the assets of wholly owned Novus Petroleum Ltd. of Australia for US$261 million.

Among the assets to be sold are an 18 percent interest in the Brantas production sharing contract (PSC) in East Java, a 9 percent stake in the Kakap PSC offshore West Natuna, all interest in Australia?s Cooper Basin, and interests in the U.S., Middle East and Pakistan upstream assets.

The Indonesian and Australian upstream interests will be sold to Australia?s Santos Limited, while the remaining assets will be sold to Dubai-based Silk Route Investments.

Medco Chief Executive Hilmi Panigoro said he expects the whole sale process to be completed by the end of this year.

Proceeds will be used to repay bank loans of about US$200 million to Singapore's United Overseas Bank Ltd. and Oversea-Chinese Banking Corp. (godang)