Jakarta (Benchmark News) – Shareholders of oil and gas issuers belongs to Arifin Panigoro PT Medco Energy International Tbk. (MEDC) condone the purchase of shares of PT Newmont Nusa Tenggara worth US $ 2.6 billion. General meeting of shareholders (EGM) incredible Medco Energy that was held last weekend approved the acquisition of 50% stake in PT Investama Minerals which Amman indirectly will have 82.2% stake in PT Newmont Nusa Tenggara.
Director of Medco Energy Hilmi Panigoro said the acquisition would add value for shareholders by providing access to the world’s standard operating facilities in Green Stone with proven reserves of 2.6 billion pounds of copper and 2.7 million ounces of gold. Undeveloped reserves reached 12.9 lbs of copper and 19.7 million ounces of gold.
The transaction quantity of equity investment portfolio and MEDC, and contributed revenues of the sector in addition to the energy in the material. ” The strategic nature of the acquisition is in line with the company’s ambition to become the leading independent player in the natural resources sector of Indonesia, “he said in press remarks Sunday (2/10/2016). Transactions that are targeted for completion in October 2016.
The company also approved purchase agreement with Japex to 16.67% participation rights acquired in A block of Aceh PSC that is targeted for completion by October 2016. Medco also meneken purchase agreement with Conoco Phillips to acquire 40% of the rights and privileges of participation in the control of operators in the South Natuna Offshore Block, block B PSC, along with transportation gas pipeline West Natuna Transportation System (WTNS) targeted for completion December 2016.
The company has pocketed funds RP2 .5 trillion of bond issuance sustainable in two stages. While 100% of the sales transaction, the right of participation in Bawean PSC is targeted for completion in quarter IV/2016. now, the EGM also approved the limited public offering (PUT) with the right order effect in advance (HMETD) worth US $ 150 million.
The funds obtained will be used to pay debt maturities and funding capital expenditures. The volume of oil and gas production in the first half of this year reached 64 MBOEPD, up 29% compared with the first half/2015. The increase was supported by the Senoro-Toili field. Cash cost per unit of oil and gas operations successfully unloaded of 32% to US $ 7.6/boe as compared to last year.
This year, the target is cash cost could reach US $ 10/boe. The average oil price realization reached US $ 38.3/bbl and gas average price reached US $ 4,18/mmbtu. The company provides engineering procurement and construction contract (EPC) A block of Aceh to build facilities for the JEC project with gas production in the quarter I/2018….(Red)