Mitsubishi lowers stake in Medco Energi

Japanese firm Mitsubishi Corp. has reduced its stake in Indonesian oil and gas producer IDX-listed PT Medco Energi Internasional Tbk, Nikkei.com reported.

The Japanese trading house invested in Medco in 2007, hoping to collaborate in energy projects. With Medco focusing more on diversifying its business into such areas as mining, Mitsubishi has decided to review the partnership, which it concluded has achieved a certain level of success, the report said.

Mitsubishi and Medco are stakeholders in a liquefied natural gas project, the Donggi Senoro LNG project in Banggai Regency, Central Sulawesi. Production began in 2015, marking a milestone of their collaboration.

Mitsubishi's nearly 20 percent stake held indirectly in Medco has declined to just below 10 percent. The shares appear to have been sold to Medco for slightly more than 2 billion yen (US$17.9 million), Nikkei said, without disclosing the source of this information. (*)