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Medco sells stake in Libyan oil project to local energy firm
MedcoEnergi's Libyan divestment follows the April divestment of its participation right in the Ophir Vietnam Block 12W, with the private oil and gas giant saying it would continue to develop its Indonesian operations.
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Technicians install a component at a pressure reduction station in East Java belonging to Ophir Indonesia (Sampang) Pty. Ltd., in this undated file photo. The London-listed energy company was acquired in May 2019 by PT Medco Energi Internasional. (Courtesy of/SKK Migas)
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T Medco Energi Internasional (MedcoEnergi) has divested from the Area 47 onshore oil development project in Libya by selling its shares to the National Oil Corporation (NOC), a state-owned firm based in Tripoli.
Indonesia’s largest private oil and gas company sold its 50 percent participation right in Area 47’s exploration and production sharing agreement (EPSA), as well as its 24.5 percent stake in the project operator, the NOC-led joint venture Nafusah Oil Operations.
The financial value of MedcoEnergi’s divestment has not been disclosed.
MedcoEnergi said the deal concluded arbitration between it and the NOC, with both parties agreeing to withdraw all claims and lawsuits.
“The divestment aligns with MedcoEnergi’s strategy to [grow] its portfolio through targeted acquisitions and divestments. We appreciated the collaboration with the NOC during the transaction,” MedcoEnergi president director Roberto Lorato said in a statement on Monday.
Area 47 is a 6,182-square-kilometer oil field in Libya discovered in 2007, and is currently still in the exploration and development phase. Following the completion of MedcoEnergi’s divestment, the NOC will hold a 50 percent participation right in the project, with the remainder belonging to the Libyan Investment Authority, the country’s sovereign wealth fund.
When its collaboration with NOC began in 2013, MedcoEnergi said the project required US$900 million in capital investment, $220 million of which would come from the Indonesian energy firm.
