Santos finalizes acquisition from Medco Energi
Monday, September 27 2004 - 01:31 AM WIB
Medco compulsory acquired Australian oil and gas producer, Novus Petroleum Ltd earlier this year after gaining 92 per cent of the company's shares.
Prior to the takeover Santos indicated it was interested in acquiring a number of the assets to strengthen its presence in the Indonesian region and boost depleting fuel supplies.
Santos on Friday said it had now executed formal agreements with Medco to acquire part of Novus's Indonesian assets and all of its Cooper Basin interests.
The completion of the agreement is subject to certain conditions, Novus said.
Santos said the deal would add about 2 million barrels of oil equivalent (mmboe) to its expected 2004 production and increase its proved and probable reserves by about 22 million boe, primarily gas.
The assets include 25 percent stake in the Kakap PSC (production sharing contract) and a 50 percent interest in the Brantas PSC, both in Indonesia.
The deal would also give Santos another 4.75 percent interest in the Cooper Basin's SA Unit, in which it already holds a 59.8 percent stake, and a 2.97 percent interest in the Patchawarra East Block, which is currently 69.4 percent owned by Santos.
The total deal is worth $US110 million, adjusted for an effective date of January 1, 2004, plus contingent consideration linked to reserves upside in Brantas' Wunut field, which is capped at US$3.5 million. (*)