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Jakarta Post

Medco concludes Ophir Energy acquisition

  • News Desk

    The Jakarta Post

Jakarta   /   Thu, May 23, 2019   /   08:12 am
Medco concludes Ophir Energy acquisition PT Medco Energi Internasional president director Hilmi Panigoro (kompas.com/Kristianto Purnomo)

Energy company PT Medco Energi Internasional announced on Wednesday that it had completed its acquisition of London-based Ophir Energy.

The company said through a press statement that it had completed the cash order that was recommended at 408.4 million pound sterling (US$517.23 million).

The Ophir acquisition will strengthen Medco Energi’s portfolio as an oil and gas company and help to achieve 29 percent production growth to 110 million barrels oil equivalent per day this year, the statement said.

The acquisition will also increase its 2P and 2C reserves by 86 percent to 1,439 million barrels of oil equivalent (MMboe).

In late 2018, the 2P reserves of both companies were recorded at 351.8 MMboe and 2C reserves were at 1,087.2 MMboe.

Medco Energi president director Hilmi Panigoro said the Ophir acquisition would boost the company’s position in Southeast Asia.

“This acquisition will strengthen the corporate strategy to expand the Medco Energi presence selectively to create added value for all stakeholders,” he said as quoted by kontan.co.id.

Medco Energi has released its 2019 operational guidance that projected the cash cost US$10 per barrel of oil equivalent.

Meanwhile, Medco Power Indonesia, a subsidiary of the company, projects to sell 2,850 GWh this year and prepare capital expenditure of $400 million. (bbn)