CORPORATE ACTION - JAKARTA. The assets of PT Medco Energi Internasional Tbk (MEDC) have increased. The increase comes after this oil and gas issuer received approval from the Sultanate of Oman to acquire a 20% stake in two blocks in the country, on Tuesday (28/11).
Medco Energi will acquire from OQ Exploration & Production LLC (OQEP) a 20% ownership of the production license for Block 60 and a 20% ownership of the exploration license for Block 48.
Both of these oil and gas blocks are located on land, specifically in the central western part of Oman. Block 60 has two production fields, namely the Bisat oil field and the Abu Butabul gas field.
OQEP is a global integrated energy company based in Oman. The company currently operates three blocks in Oman (8, 48, and 60). In addition, they also participate in a number of joint ventures for exploration and production assets in Oman and Kazakhstan.
OQEP will remain the operator of both blocks.
"This acquisition is in line with our strategy to own and develop high-quality assets that generate cash with great growth potential," explained Medco Energi's President Director, Hilmi Panigoro, in a press release, Wednesday (29/11).
Medco Energi hopes that the transaction will be completed by December 2023. Unfortunately, Hilmi did not detail the value of the block acquisition.
Once completed, this acquisition will increase Medco Energi's daily production by 13 million barrels of oil per day (MBOEPD) and make a significant contribution to Medco's future gas and oil reserves.