MedcoEnergi Acquires ConocoPhillips Indonesia

TheIndonesia.id - Medco Energi Internasional announced the acquisition of all shares issued by ConocoPhillips Indonesia Holding, or CIHL.

MedcoEnergi’s CEO Roberto Lorato said the move is in line with the company’s objective to further cement its position in Southeast Asia region through a number of acquisitions.

“This transaction builds on MedcoEnergi’s track record of accretive acquisitions and fits well with our climate change strategy. The acquisition further strengthens MedcoEnergi’s footprint in Southeast Asia and will generate significant synergies with our Sumatra operations,” Lorato said in a statement on Wednesday, December 8.

CIHL holds 100 percent of interest in ConocoPhillips (Grissik) Ltd. and a 35 percent interest in Transasia Pipeline Company Pvt. Ltd. CPGL is the operator of Corridor PSC in Sumatra, Indonesia, with a 54 percent working interest.

Corridor PSC has two producing oil fields and seven producing gas fields located onshore South Sumatra. The majority of production is gas and has been sold under long-term contracts to a number of Indonesian and Singapore counterparties.

Through Transasia, MedcoEnergi will own a minority interest in the gas pipeline network that supplies customers in Central Sumatra, Batam, and Singapore.

The acquisition is expected to be completed in the first quarter of 2022 and is subject to customary conditions and shareholders’ approval at an Extraordinary General Meeting of Shareholders.

Upon the acquisition, MedcoEnergi 2022 pro forma guidance will be oil and gas production of 155 mboepd (milion barrel oil of equivalent per day), with capital expenditures of US$275 million and unit cash costs below US$10/boe.

President director of MedcoEnergi Hilmi Panigoro said the company remains committed to be environmentally and socially responsible in their business operations.

“As for all our operations, we are committed to maintaining high standards in safety, environmental stewardship and social responsibility. The acquisition of Corridor strengthens MedcoEnergi’s position as Indonesia’s leading independent energy and natural resources company, and reaffirms our commitment to national development,” Panigoro said in the statement.