The acquisition of Medco Energi Internasional Tbk(MEDC) with ConocoPhilips Indonesia Inc Ltd (CIIL) and ConocoPhillips Singapore Operations Pte Ltd (CSOP), ConocoPhillips (COP) subsidiaries, will increase the oil and gas production by 35%. The company has not announced the details.
Until the first quarter 2016, the oil production reached 30.7 mbpod, 1.3% lower than 2015. The gas production reached 197.6 mmscfd, rose significantly by 79.8%. The company has not announced its performance report for the first semester.
MEDC has 40% of CIIL and CSOP shares. CIIL is the PSC South Natuna Sea Block B PSC and West Natuna Transportation System (WNTS) operator. CSOP operates Onshore Receiving Facility in Singapore. According to management, WNTS infrastructure and Malaysian gas pipelines are important for commercialization of oil and gas and exploration activity around Natuna. The transaction is expected to be finished by the fourth quarter.
Roberto Lorato, CEO of MEDC, said that the acquisition will give the additional oil and gas reserves and yearly production more than 35%. Lorato said that the transaction could increase its revenue by the strong cash flow.
DBS Vickers recommended BUY for MEDC with a target price of IDR 2.000. On Tuesday (20/9), MEDC fell 2.8% to IDR 1.540. (*)
Add Comment