Medco to soon finalize acquisition of Natuna Sea Block PSC
Saturday, September 17 2016 - 03:41 AM WIB
ConocoPhillips and IDX-listed energy company PT Medco Energi Internasional Tbk are expected to sign sale and purchase agreement at the end of this month for the former?s stake in Natuna Sea Block PSC in Natuna Sea, Riau Islands Province, according to a source.
?At the end of September, the two have agreed to initiate the sales and purchase agreement. The two also have committed to reach financial close in the fourth quarter of 2016 including to arrange the transfer of the operatorship of the block,? the source told Petromindo.com.
Medco Energi CEO Hilmi Panigoro declined to provide much comment. ?There has been no official agreement yet, so I have no comments,? he said.
Vice President of Conocophillips Indonesia Joang Laksanto could not be immediately reached for confirmation.
This portal reported in May that Medco was competing with PT Saka Energi Indonesia, a subsidiary of IDX-listed gas distributor PT Perusahaan Gas Negara Tbk for the CononoPhillips? 40 percent interest in Natuna Sea Block B PSC.
ConocoPhillips is the operator of the block. Other shareholders include US oil major Chevron Corp. with 35 percent interest, while the balance is held by Japanese firm Inpex.
According to the ConocoPhillips? website, its net production from the block in 2014 was 29,000 BOEPD including crude oil (5,000 BPD), gas (117 MMCFD) and natural gas liquid (4,000 BPD).
The block was awarded in 1968, and first production came on line in 1979, with expiration scheduled in 2028. Natural gas produced from the block is sold to Singapore and Malaysia through two long-term contracts via the West Natuna Transportation System Gas Pipeline.
Editing by Reiner Simanjuntak