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Medco Energi expands to PNG by acquiring 90% interest in Moonbi Energy

JAKARTA (Rambu Energy) – PT Medco Energi Internasional Tbk through its wholly owned subsidiary Medco Asia Pacific Limited has completed a Sale and Purchase Agreement with Moonbi Enterprises Limited to acquire 90 percent shares in Moonbi Energy Limited, a subsidiary of the seller.

With this transaction, Medco Energi obtains an exploration license for six years to conduct oil and gas exploration activities in the Juha Extension area designated as Petroleum Prospecting License No.470 (PPL 470) in the Western Province of Papua New Guinea (PNG), Medco Energi said in a statement Monday.

PPL 470 consists of four onshore blocks with working areas totaling 324 km2. The areas are located in the Papuan Fold Belt (Papuan Basin) and in a proven petroleum system as they are adjacent to the Juha gas field operated by major multinational companies since 2000.

“This acquisition in PNG is in line with the company’s strategy to focus on high-graded exploration opportunities and to expand our E&P operation internationally,” President Director & CEO of Medco Energi Lukman Mahfoedz said.

He said the PPL 470 has very attractive oil and gas fiscal terms, with a royalty and tax system (not a PSC regime) in which the contractor share can reach as high as 70 percent.

“I am confident PPL 470 can play a key role in adding value to the Company and in supporting Medco Energi’s business growth in the near future,” Lukman also added.

He said last year Medco Energy had an aggressive exploration program. In 2013, it spent over US$ 90 million for exploration program and this year the company’s exploration commitment will increase to US$ 155 million. “And we now also have exploration in PNG.”

“Our operations in difficult areas in the past 10 years, both in domestic and international locations, including drilling operations in remote sites, will be valuable experience in supporting the exploration program in this new frontier area,” Lukman said.

Medco Energi is a publicly listed integrated energy company with focus in exploration and production of oil and gas business. The company has operations in Indonesia, including operating 9 oil and gas blocks, maintaining working interest in one block operated by partner, and holding economic participating interest in an exploration field.

In overseas, Medco Energi operates in Oman, Yemen, Libya, Papua New Guinea and Gulf of Mexico in the United States of America. In addition MedcoEnergi operates several gas-fired, coal power plants and supplies electricity to the Indonesian State-Owned Electricity Company (Perusahaan Listrik Negara/PLN). (*)

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