Medco Acquires Lundin with Four Additional Oil and Gas Blocks

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  • Medco Energi. TEMPO/Cheppy A. Muchlis

    Medco Energi. TEMPO/Cheppy A. Muchlis

    TEMPO.CO, Jakarta - PT Medco Energy International has completed the acquisition of Lundin Indonesia Holding B.V., a subsidiary company of Lundin Sea Holding AB based in Sweden. Medco has also acquired Lundin’s participation interest in a number of oil blocks.

    “[The acquisition] is currently being finalized,” Medco Energy President Director Lukman Mahfoedz said in a press release on Saturday, October 10, 2015.

    The acquisition includes 25.88 percent of non-operator participation interest in the Lematang Block and 60 percent of non-operator participation interest in the South Sokang Block. Medco also acquired Lundin’s participation interest in the Cendrawasih VII Block.

    Lukman explained that the acquisition was aimed at optimizing Singa oil field’s productivity in the Lematang Block. Medco had reportedly set a target to produce 42 MMSCFD of gas this year.

    “We hope that the government would approve the transaction as soon as possible, since Medco Energy has become an operator in Lematang PSC. We will continue to supply gas for state electricity company PLN for the right price,” he said.

    Currently, the Upstream Oil and Gas Regulatory Special Task Force (SKK Migas) is reviewing the acquisition and will provide recommendations for the Energy and Mineral Resources Ministry for approval.

    ROBBY IRFANY