MedcoEnergi, ConocoPhillips sign share SPA for South Natuna Sea Block B
PT Medco Energi Internasional (MedcoEnergi) has signed a share sale and purchase agreement (SPA) to acquire ConocoPhillips Indonesia Ltd. (CIIL) and ConocoPhillips Singapore Operations Ltd. (CSOP), both subsidiaries of ConocoPhillips (COP).
CIIL is the Operator of the South Natuna Sea Block B (SNSB) with a 40% working interest and is the operator of the West Natuna transportation system (WNTS). CSOP operates the onshore receiving facility in Singapore. The WNTS infrastructure together with the Malaysian pipeline is, and will continue to be the focal point for the commercialization of existing discoveries and ongoing exploration activities within the Natuna area. The transaction is expected to complete in Q4 2016.
Roberto Lorato, CEO, said that “Once effective, this acquisition will add substantial gas and liquids reserves and increase MedcoEnergi’s daily production by over 35%. With solid cash flows despite the current low oil price, the transaction is immediately accretive. Above all, we acknowledge SNSB’s world class operating scale and infrastructure, it’s highly experienced and proven operating team and best-in-class health, safety, and environmental record. We look forward to integrating the asset into MedcoEnergi’s upstream portfolio.”
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