By an OGJ Online Correspondent
BANGKOK, Oct. 9 -- Thailand's PTT Exploration and Production Plc (PTTEP) agreed to acquire a 40% interest in the holding firm that controls PT Medco Energi Internasional Tbk, an Indonesian petroleum exploration concern, for $225 million.
PTTEP Offshore Investment Co. Ltd. (PTTEPO), a subsidiary of PTTEP, will buy the interest in New Links Energy Resources from Cumin Ltd., a holding company owned by Credit Suisse First Boston. The deal is due to be completed by yearend.
After the purchase, Encore International Ltd. will continue to own 60% of New Links.
New Links holds 85.44% of Medco, which is involved in upstream oil and gas exploration and production in Indonesia, covering areas including Sumatra, Kalimantan, Sulawesi, Java, and Madura.
Medco is listed on the Jakarta Stock Exchange. PTTEP could make a tender offer to acquire the rest of Medco stock.
PTTEP said, "We believe the investment to be appropriately priced at $1.74/boe of proven reserves and to be in accordance with PTTEP's policy to expand investment overseas."
On Jan. 1 Medco had 315 million boe of reserves, 70% of it oil. Production was 88,200 b/d in the first 6 months.
