Pertamina acquires Maurel & Prom? share

State-owned oil and gas firm PT Pertamina (Persero) has entered into an agreement with French firm Pacifico to purchase the 24.53 percent of the latter?s share in Maurel & Prom for a price of 4.20 euros per share plus an earn-out of 0.5 euros per share., both firms said in a statement on Monday.

The earn-out will be paid if, from Jan. 1, 2017 (included) to Dec. 31, 2017 (included), the Brent price remains above US$65 per barrel during all trading days within a period of ninety consecutive calendar days. The completion of the transaction is subject to regulatory approvals from relevant authorities.

Upon completion of the transaction and subject to positive recommendation of Maurel & Prom?s Board of Directors, Pertamina undertook to file, under the same terms, a voluntary tender offer on all securities of Maurel & Prom.

Wianda Pusponegoro, Vice President Corporate Communication of Pertamina said that ?this project is part of Pertamina?s 5 strategic pillars implementation to enhance its upstream footprint around the world. This Pertamina?s impressive stride demonstrates its strong commitment to ensure the Indonesia energy security?. The contribution of Maurel & Prom?s highly experienced teams will be key to the success of this ambitious strategy.

Maurel & Prom is an independent oil company engaged in the extraction and production of hydrocarbons, listed on Euronext Paris and headquartered in Paris with a market capitalization of c. 550 million euros.

Pertamina?s President Director Dwi Soetjipto was quoted by the local media as saying that Maurel & Prom has total reserves of 205 million barrels of oil equivalent (mmboe), 78 percent of which is located in Gabon and 22 percent in Tanzania.

Meanwhile, Pertamina?s SVP Upstream Business Development Denie Tampubolon said Pertamina has prepared 200 million euros for the acquisition of Maurel & Prom and between 30-40 million euros in exploration funds Maurel & Prom.

Editing by Johannes Simbolon