Thai's PTTEP plans to sell Medco stake: Report

PTT Exploration and Production Plc (PTTEP), a unit of PTT Plc, Thailand?s largest oil conglomerate, confirmed that it was looking to sell out its 34.2 percent stake in its Indonesian upstream operation, Medco Energi International, for a reported sum of US$600 million, Bangkok-based Business Day Newspaper reported Friday.

The paper said that the move, which is expected to be completed by the end of this year, would help bring in handsome gains for PTTEP as the company?s acquisition cost for the 34.2 percent stake was around $250 million.

The PTTEP official also confirmed reports in India which stated that Indian Oil Corp., India's largest oil refiner and retailing firm, was among 8-10 bidders for the stake, the paper said.

PTTEP, Credit Suisse First Boston (CSFB) and Encore International (Panigoro family), are Medco?s shareholders through a Mauritius-based company New Links Energy. New links holds 85.51 percent shares in Medco.

The paper added that PTTEP and CSFB are both looking to sell their combined stake of 51.2 percent in Medco. (*)