JAKARTA (TheInsiderStories) – Issuer in the oil and gas sector, PT Medco Energi Internasional Tbk (IDX: MEDC) is eyeing fresh funds more than Rp3 trillion (US$206.90 million) from rights issue, the company said on Monday (07/27). The company sold a maximum of 7.5 billion new shares in this program.
On Friday, the share price of the company owned by Panigoro family was at the level of Rp466 per unit. The producer said, the shareholders had approved the planned on June 25, 2020.
Currently, MedcoEnergi shares are held by PT Medco Daya Abadi 50.01 percent, Diamond Bridge Pte Ltd 21.38 percent, PT Medco Duta 0.19 percent, PT Multidfabrindo 0.04 percent, and public investors 27.98 percent.
“If the shares are not taken entirely by the public, then the remaining shares will not be removed from the portfolio,” the company said in its official statement.
The funds from the issuance of new shares will be used for working capital MedcoEnergi or its subsidiaries. Recently, the oil and gas company decided to cut its initial capital expenditure from $340 million to only $ 240 million. Of this total, $180 million will be allocated to the oil and gas segment, while $60 million will be allocated to the electricity segment.
More specifically, as much as $117 million of which was used for PSC projects, $21 million for non-PSC projects, and $42 million for exploration costs. The issuer engaged in the oil and gas sector is targeting to be able to produce oil and gas at 100 million barrels of oil of equivalent per day.
MedcoEnergi‘ existence began with the establishment of PT Meta Epsi Indigenous Drilling Company (MEDCO), which was founded in 1980 and then entered the stock exchange on December 6, 1994. The following year, the company acquired Stanvac Indonesia and entered the downstream business in 1997.
In 2018, the company entered into Yemen by acquiring Blocks 82 and 83 and in 2010 obtained operatorship in Libya and made 3 findings, namely a 20-year contract extension for the South & Central Sumatra Block, Block A, and the Bawean Block, Indonesia.
In 2014, MedcoEnergi successfully acquired eight oil and gas working areas in Tunisia, through the acquisition of Storm Venture International (Barbados) Ltd. Last year, the company completed the sale of several non-core assets, including Tunisia, Mexico Block 5, monetizing the shareholders’ loan of PT Amman Mineral Nusa Tenggara (AMNT).
The company has sold a 10 percent stake in PT Amman Mineral International (AMI), operator of the Batu Hijau copper and gold mine in West Nusa Tenggara to PT Sumber Mineral Citra Nusantara for $ 202 million. The buyer is allegedly related to the Bakrie Group.
Divestment of shares made the company’ ownership in AMI fell to 29.35 percent from 39.35 percent initially. This unit controls 82.2 percent of AMNT’ shares, which cover 25 thousand hectares in Sumbawa, West Nusa Tenggara after being acquired in November 2016. The company was originally named PT Newmont Nusa Tenggara.
In addition to AMNT, the producer plans to release its assets in Libya (Block 47). The publicly listed company has sent a letter requesting approval for the opening of technical information to several prospective block buyers to the Libyan Government.
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