Medco Energi has agreed to acquire a 45% operating interest in the Sakakemang PSC and an 80% operating interest in the South Sakakemang PSC, located in South Sumatra, Indonesia, subject to Government of Indonesia approval.
The Sakakemang PSC has an approved Plan of Development from the Indonesian Government and is adjacent to the Medco-operated Corridor PSC. The acquisition follows the recent expansion of the Corridor PSC, and the award of the South Sumatra Amanah exploration PSC to Medco. This expansion also aligns with the Government of Indonesia’s program to ensure national energy security.
Additionally, in a series of separate transactions, MedcoEnergi has acquired a further interest in PT Transportasi Gas Indonesia ('TGI') raising its effective ownership to 40%. TGI transports natural gas from Medco’s Corridor PSC and other South Sumatra–Jambi suppliers through its pipeline network to buyers in Riau, as well as Batam and Singapore.
This consolidation of the Medco footprint is consistent with the Company’s strategy of acquiring assets with significant growth potential, established infrastructure, and strong market access in well-understood regulatory frameworks.
Roberto Lorato, Chief Executive Officer of MedcoEnergi, stated, 'These acquisitions, ~US$90 million in total, strengthen the Company’s strategic position in South Sumatra and Java’s integrated gas value chain. Our reserve base and ownership in strategic infrastructure secure access to long-life cash-generating assets and enhance MedcoEnergi’s role in supporting Indonesia’s energy needs.'
Source: Medco Energi
