PTT keen to increase stake in Medco

Thailand's PTT PCL will pump more funds into its Indonesia affiliate, PT Medco Energi International, if PTT's unit, PTT Exploration & Production, approves the move, the Business Day reported Tuesday, quoting PTT President Viset Choopiban.

Viset said PTT, which has a 61 percent stake in PTTEP, will look at investing more funds into Medco if PTTEP considers the investment sound enough, the report says.

"The issue of further investment in Medco depends upon PTTEP along with a whole range of issues such as the price, pre-requisite and the returns that we could make on these investments," he said.

Viset said all factors would be considered before a decision is made. He said PTT has a long-standing interest in acquiring more shares in Medco, Indonesia's largest publicly traded oil and natural gas company. Medco has been contributing positively to PTTEP's profit for the past year, the report says.

Viset was responding to plans by Cumin, a holding company owned by Credit Suisse First Boston, that said it plans to sell its 19 percent stake in Mauritius-based New Links Energy Resources.

PTTEP currently holds a 40 percent stake in New Links Energy Resources, which owns 85.44 percent of Medco. Encore International has a participating interest of 40.1 percent in New Links.

The move to acquire New Links shares would help increase PTTEP's interest in Medco, in a strategic move for the Thai company, which has been looking for greater exposure to the regional energy market.

Viset has said his intention was to see PTTEP expand its operations in Southeast Asia and use the various resources available to produce and import the oil and gas into Thailand, the report says. (*)