JAKARTA (RambuEnergy.com) – Inpex Corporation of Japan announced on Tuesday that it has decided to sell all its shares in Inpex Natuna Ltd., its wholly -owned subsidiary that holds a 35% participating interest in South Natuna Sea Block B (the Block) in Indonesia, to PT Medco Daya Sentosa (Medco), a subsidiary of PT Medco Energi Internasional Tbk., a listed Indonesian energy company.
Following its acquisition of a participating interest in the Block in 1977, Inpex began producing crude oil in 1979 and natural gas in 2001.
Thereafter, crude oil, natural gas and Liquid petroleum gas (LPG) development and production activities took place at multiple oil and gas fields in the Block, contributing to Inpex’s continuous enhancement of E&P activities.
After almost 40 years since the start of oil production, the contribution of Inpex Natuna, Ltd. in terms of income and cash flow is expected to become relatively limited. Hence with a view to optimize the Group’s global asset portfolio, Inpex has decided to sell all its shares in Inpex, Ltd.
In terms of the Impact on the company ’s consolidated financial forecasts for the year ending March 31, 2017, Inpex expects an impact to the net income attributable to owners of Parent of around 13.
5 billion yen mainly as a result of reporting approximately 16.0 billion yen as non-operating expenses. However, the impact has already been factored into the revised consolidated financial forecasts for the year ending March 31, 2017 announced on February 10, 2017 as a loss associated with asset portfolio reviews, etc.
Consolidated financial forecasts will therefore not be revised at this time. (*)