Thai?s PTTEP to acquire another 10% in New Links Energy

Thailand?s PTT Exploration and Production Plc (PTTEP) will acquire an additional 10 percent stake in an Indonesian petroleum exploration venture to raise its holding to 50 percent, Bangkok Post quoted PTTEP?s president, Chitapongse Kwangsuksatit as saying Tuesday.

The additional shares in New Links Energy Resources -- the holding company of PT Medco Energi International Tbk -- would be bought from retail shareholders for about $26m, subject to approval by the Jakarta Stock Exchange, he said.

PTTEP?s unit, PTTEP Offshore Investment Co. recently paid $225m to buy a 40 percent share in New Links from Cumin Ltd, a holding company owned by Credit Suisse First Boston (CSFB).

Medco is involved in upstream oil and gas exploration and production in many areas in Indonesia, including Sumatra, Kalimantan, Sulawesi, Java and Madura.

The new share purchase, expected to be wrapped up next month, would raise PTTEP's proportion of petroleum output by 30 percent to 124,000 barrels per day from 94,000 barrels at present, and increase its revenue by at least 30 percent.

Chitapongse said the Indonesian petroleum firm had bright prospects after a series of discoveries in several fields.

The offshore investment is in line with PTTEP's policy to raise its oil production.

Despite a global slowdown and the fact that oil prices were unlikely to increase, the investment had high potential, he said. (*)