Medco Energi acquires 40% interest of West Natuna Sea Block B PSC from ConocoPhillips

JAKARTA ( – PT Medco Energi Internasional Tbk (IDX:MEDC) has signed a share Sale and Purchase Agreement to acquire ConocoPhillips Indonesia Inc. Ltd. (CIIL) and ConocoPhillips Singapore Operations Pte. Ltd. (“CSOP”), both subsidiaries of ConocoPhillips (COP).

CIIL is the opperator of the South Natuna Sea Block B PSC (SNSB) with a 40 percent working interest and is the Operator of the West Natuna Transportation System (WNTS). CSOP operates the Onshore Receiving Facility (ORF) in Singapore.

The WNTS infrastructure together with the Malaysian pipeline is, and will continue to be the focal point for the commercialization of existing discoveries and ongoing exploration activities within the Natuna area. The transaction is expected to complete in Q4 2016, Medco Energi said in a statement.

“Once effective, this acquisition will add substantial gas and liquids reserves and increase MedcoEnergi’s daily production by over 35%. With solid cash flows despite the current low oil price, the transaction is immediately accretive. Above all, we acknowledge SNSB’s world class operating scale and infrastructure, it’s highly experienced and proven operating team and best-in-class health, safety, and environmental record. We look forward to integrating the asset into MedcoEnergi’s upstream portfolio,” Roberto Lorato, CEO of Medco Energi, said.

Hilmi Panigoro, President Director, commented that, “As a national private oil and gas company, we continue to seek opportunities to grow MedcoEnergi’s contribution to the Indonesian economy. This transaction will strengthen MedcoEnergi’s footprint in Indonesia and significantly enhance its upstream oil and gas capabilities through the integration of world-class offshore operations.”

About South Natuna Sea Block B

  • Operator: Conocophillips
  • Country: Indonesia
  • Location: South Natuna Sea
  • Production start: 1979
  • Partners: Operator: ConocoPhillips (40.0 percent), INPEX (35.0 percent), Chevron (25.0 percent)
  • South Natuna Sea Block B PSC was awarded in 1968, and first production came on line in 1979. The PSC is scheduled to expire in 2028.
  • The block is in approximately 300 feet of water and has 11 offshore platforms, four producing subsea fields, and one FPSO, the Belanak FPSO, in addition to two dedicated floating storage and offloading vessels.
  • The infrastructure supports three producing oil fields, as well as 16 natural gas fields in various phases of development. Currently eight gas fields are in production, of which five have associated recoverable oil or condensate volumes.
  • The fields include the Belanak Oil And Gas Field, South Belut Gas Field, Hiu Gas, Kerisi Oil and Gas, North Belut Gas Field and Bawal Gas fields
  • Natural gas is sold to Singapore and Malaysia through two long-term contracts via the West Natuna Transportation System Gas Pipeline. (*)

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