Medco signs deal to acquire South Natuna Sea Block B PSC

IDX-listed energy company PT Medco Energi Internasional Tbk announced Monday that it has signed a sales and purchase agreement (SPA) with ConocoPhillips to acquire the latter?s subsidiaries ConocoPhillips Indonesia Inc. Ltd. (CIIL) and ConocoPhillips Singapore Operations Pte. Ltd. (CSOP).

Medco said in a statement that CIIL, which is the operator of the South Natuna Sea Block B PSC with a 40 percent interest, is also the operator of the West Natuna Transportation System (WNTS).

It added that CSOP operates an onshore receiving facility in Singapore. ?WNTS infrastructure along with the Malaysia gas pipeline network will continue to hold important role in the commercialization of oil and gas findings and exploration activities in the Natuna region,? Medco said in the statement.

Medco said that the transaction is expected to be concluded in the fourth quarter of this year.

Medco CEO Roberto Lorato said that the acquisition will provide significant additional oil and gas reserves and increase the company?s annual production by more than 35 percent.

Editing by Reiner Simanjuntak