Source: Medco Energi
Medco Energi Internasional Tbk (MedcoEnergi/the Company) is pleased to announce the completion of 100% shares acquisition of Tomori E&P Limited (TEL) by Mitsubishi Corporation amounting US$ 260 million.
TEL was the Company’s wholly-owned subsidiary which held 20% participating interest in the Production Sharing Contract (PSC) of Senoro-Toili working area (Senoro-Toili PSC block), together with PT Medco E&P Tomori Sulawesi, other MedcoEnergi’s wholly-owned subsidiary, and PT Pertamina Hulu Energi Tomori Sulawesi, a subsidiary of PT Pertamina (Persero), which holds the remaining 30% and 50% participating interest, respectively.
The Company acquired 50% participating interest of Senoro-Toili PSC block in 2000, which currently produces approximately 1,900 Barrel of Oil per day from the Toili oil field and currently has a 250 MMCFD Gas Sales and Purchase Agreement for the Senoro gas field with PT Donggi Senoro LNG, a company owned by Sulawesi LNG Development Limited (MC 75%, Korea Gas Corporation 25%), Pertamina and MedcoEnergi, through their wholly owned subsidiaries, i.e. Pertamina Energy Services
Pte. Ltd. (PES) and PT Medco LNG Indonesia (MLI) respectively, which will construct and operate a Liquefied Natural Gas Plant and Facilities with production capacity of 2 million tones per annum. The development work to produce the Senoro gas field will commence soon with the production target of the second quarter 2014.
The Company believes that the entrance of MC to the Senoro-Toili PSC block will create synergies through the development activities of the Senoro Gas Development Project, both from the upstream and downstream sides. The cooperation will create greater value and provide greater assurance to the whole Project.
The incoming US$ 260 million of gross proceeds from the acquisition of TEL by MC would enable the Company to improve its capital structures, which would be reflected on the increase of the Company’s equity and resulted a decrease on the Company’s debts to equity ratio. Thus, the Company will manage to continue delivering stronger balance sheet in years to come.
The divestment is part of MedcoEnergi’s asset optimization program, which has long been in the center of the Company’s global strategy over the past few years to reduce its leverage and improve the Company’s book. Closing of this transaction is aimed at achieving that goal, upon which MedcoEnergi will be better positioned for the future, with a stronger capital structure and a solid platform to deliver its Key Development Projects, and confirming that the Company is moving on the roadmap to drive long-term shareholder value and other stakeholders.
Mitsubishi gains Senoro Toili natural gas field stake in $260MM acquisition
Source: Medco Energi