JAKARTA (TheInsiderStories) - An Indonesiaan listed energy company, PT Medco Energi Internasional Tbk (IDX: MEDC), through its unit PT Medco Daya Sentosa (Medco) acquired 35 percent of South Natuna Sea Block B (the Block) participant form a subsidiary of Inpex Corporation (INPEX). With this acquisition, the company now own 100 percent stake of the block after acquired 25 percent of ConocoPhillips Indonesia Inc. Ltd and ConocoPhillips Singapore Operations Pte. Ltd, both subsidiaries of ConocoPhillips on Sept. 19, 2016.
In announcement released today, Inpex statet that it has decided to sell all its shares in INPEX NATUNA Ltd., its wholly-owned subsidiary that holds a 35% participating interest inSouth Natuna Sea Block B.
Following its acquisition of a participating interest in the Block in 1977, INPEX began producing crude oil in 1979 and natural gas in 2001. Thereafter, crude oil, natural gas and liquid petroleum gas (LPG) development and production activities took place at multiple oil and gas fields in the Block, contributing to INPEX’s continuous enhancement of E&P activities.
After almost 40 years since the start of oil production, the contribution of INPEX NATUNA. in terms of income and cash flow is expected to become relatively limited. Hence with a view to optimize the Group’s global asset portfolio, INPEX has decided to sell all its shares in INPEX NATUNA, Ltd.
In terms of the impact on the company’s consolidated financial forecasts for the year ending March 31, 2017, INPEX expects an impact to the net income attributable to owners of parent of around 13.5 billion yen mainly as a result of reporting approximately 16.0 billion yen as non-operating expenses. However, the impact has already been factored into the revised consolidated financial forecasts for the year ending March 31, 2017 as a loss associated with asset portfolio reviews, etc.
ConocoPhillips Indonesia is the Operator of the South Natuna Sea Block B PSC with a 40% working interest and is the Operator of the West Natuna Transportation System (WNTS) while ConocoPhillips Singapore Operations operates the Onshore Receiving Facility 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.
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.”