PTTEP says still in talks with Temasek, Encore on Medco

Thailand's PTT Exploration and Production PCL (PTTEP) said on Tuesday it is in talks with two bidders, Singapore's Temasek and Indonesia's Encore, on selling its stake in Medco Energi Internasional Tbk, agencies reported.

The deal was expected to be concluded by the end of this year, PTTEP president Maroot Mrigadat told reporters.

Encore, a former shareholder in the New Links Energy Resources holding company which owns 85.5 percent of Medco, had a right to buy New Links shares from PTTEP, he said without elaborating.

PTTEP, 65 percent owned by top Thai energy firm PTT PCL , has a 40 percent stake in New Links, giving it an indirect 34.2 percent stake in Indonesian petroleum producer Medco.

"The selling price should be reasonable. But we are not in a hurry to sell because we have to consider the return," Maroot said.

PTTPE's plan to sell its stake in Medco reflected a change in company strategy to direct investment in new petroleum resources in Indonesia instead of a holding company, he said.

State investment fund Temasek, which intends to trim its assets in Singapore to one-third of the total in the next decade, said last month it had been chosen as the preferred bidder for the Medco stake, which is valued at about $289 million.

Medco is the largest independent exploration and production company in Indonesia.(*)