Medco Acquires The Rights Of Participation In The Sakakemang Block Of South Sumatra

Photo: Special

JAKARTA - PT Medco Energi Internasional Tbk or MedcoEnergi announced an agreement to acquire 45 percent of the participation rights as well as operators in PSC Sakakemang, as well as 80 percent of the participation rights as well as operators in South Sakakemang in South Sumatra, Indonesia, will be effective after obtaining approval from the Government of Indonesia.

PSC Sakakemang has obtained approval from the Development Plan or Plan of Development (POD) from the Government of Indonesia and is directly adjacent to the PSC Corridor operated by Medco.

MedcoEnergi's Chief Executive Officer, Roberto Lorato, explained that this acquisition follows the company's newly completed PSC Corridor expansion, as well as Medco's determination as the winner of the PSC Amanah exploration auction in South Sumatra.

"This expansion is also in line with the Government of Indonesia's program to ensure national energy security," he said, Tuesday, September 16.

In addition, through a series of separate transactions, MedcoEnergi has increased ownership of PT Transport Gas Indonesia (TGI), increasing the Company's effective ownership to 40 percent.

TGI distributes natural gas from PSC Corridor operated by the Company and other suppliers in the South Sumatra region of Jambi via pipeline networks to buyers in Riau, Batam, and Singapore.

Konsolidasi portofolio Perseroan ini selaras dengan strategi Perseroan untuk mengakuisisi aset dengan potensi pertumbuhan yang signifikan, didukung infrastruktur yang telah tersedia, serta akses pasar yang kuat dalam kerangka regulasi yang dipahami dengan baik.

“Akuisisi senilai total sekitar 90 juta dolar AS ini memperkuat posisi strategis Perseroan di Sumatra Selatan serta peran kami pada rantai nilai gas terintegrasi di Jawa," lanjut dia.

Portofolio cadangan hidrokarbon dan kepemilikan atas infrastruktur strategis memberikan akses pada aset dengan profil arus kas jangka panjang yang kuat, serta memperkuat peran MedcoEnergi dalam mendukung kebutuhan energi Indonesia.

The Company's portfolio consolidation is in line with the Company's strategy to acquire assets with significant growth potential, supported by available infrastructure, as well as strong market access within a well-understood regulatory framework.

"This acquisition worth a total of around 90 million US dollars strengthens the Company's strategic position in South Sumatra as well as our role in the integrated gas value chain in Java," he continued.

The hydrocarbon reserve portfolio and ownership of strategic infrastructure provide access to assets with a strong long-term cash flow profile, as well as strengthen MedcoEnergi's role in supporting Indonesia's energy needs.