MedcoEnergi signs bank guarantee loan with Oman?s bank

IDX-listed PT Medco Energi Internasional signed on Wednesday an agreement with Oman?s Alizz Islamic Bank SAOG to provide bank guarantee loan for the former?s Karim Small Fields (KSF) project in the country.

The agreement was signed by MedcoEnergi?s CEO Lukman Mahfoedz and Alizz Islamic Bank?s CEO Salaam Al Shaksy at the bank?s headquarters in Oman.

Lukman said MedcoEnergi was able to clinch deal within a short time and got a competitive rate for the bank guarantee.

The agreement followed the signing of the amendment of MedcoEnergi?s contract on KSF with Petroleum Development of Oman in the past April. Under the amendment, the firm?s contract has been extended by another 25 years with more favorable commercial terms for the firm and its partners, which provides opportunities for the firm to explore for more hydrocarbon resources in the country.

According to Lukman, MedcoEnergi has been able to double the field?s production in nine years, generating US$4.6 billion in revenues for the Oman government.

Editing by Johannes Simbolon