JAKARTA (TheInsiderStories) – Indonesian oil and gas producer, PT Medco Energi Internasional Tbk (IDX: MEDC) plans to prepare an initial public offering (IPO) for PT Medco Power Indonesia (MPI) and PT Amman Mineral Nusa Tenggara (AMNT). The company is also looking for a strategic partner to work on projects with MPI, said the management on Monday (8/19).

Director Finance and International Planning Medco Energi Internasional Anthony R. Mathias said the company had appointed JP. Morgan is looking for MPI’s strategic partners which understand the development of gas to electricity conversion and master in the technology of gas conversion into liquefied natural gas (LNG). He claimed to have received offers from a number of parties but did not mention the origin of the prospective investor.

Furthermore, Mathias also confirmed that he would prepare an IPO for AMNT. However, he also could not reveal the details, but it is still seeing the right candidate for the underwriter.

MPI is the subsidiary of Medco Energy with the ownership of 100 percent. Currently, MPI is managing several gases, geothermal and water power plants.

While, Medco officially controlled 50 percent of PT Amman Mineral Investama (AMI) shares on November 3, 2016. AMI is an indirect controller of 82.2 percent of AMNT which controls the Batu Hijau copper and gold mine in the Sumbawa Islands.

On the other hand, Medco has completed the Ophir Energy acquisition, therefore Ophir’s performance will begin to consolidate into Medco’s books from early June 2019. Furthermore, Ophir will synergize with Medco in the areas of finance, supply chain, maintenance, and several other aspects.

The synergy is expected to increase efficiency by up to US$30 million per year. With this efficiency, the company’s profit is expected to increase this year. While in the first semester of 2019, the company’s net profit was corrected by 32.76 percent to $27.86 million from $41.44 million in the first semester of 2018.

Written by Staff Editor, Email: theinsiderstories@gmail.com