JAKARTA: PT Medco Energi International Tbk through its unit, Medco Yemen Malik Ltd, acquired 25% of Reliance Exploration & Products DMCC (REPDMCC) shares at Block 9 (Malik) in Republic of Yemen at US$90 million.
Such acquisition is in line with company strategy to strengthen its production assets portfolio, said Medco Energi’s President Director Lukman Mahfoedz.
“The transaction worth US$90 million with an extra US$50 million if the oil production reaches 10,000 barrels per day. Block 9 currently produces 6,000-6,500 barrels per day,” he told Bisnis on Monday (8/6/2012).
After previously acquired two exploration blocks in 2009, the recent transaction, explained Lukman, is the company’s bigger acquisition act in Middle East and North Africa countries, especially in Yemen.
After completing pre-conditions of the transactions, including Yemen’s Ministry of Energy and Mineral approval, Medco Energi will manage 21.25% ownership (of the total 25%) as the remainder will go to Yemen Oil and Gas Company (YOGC).
Block 9, in details, is managed by Calvalley Petroleum (Cyprus) Ltd who also runs as operator, by 42.5%, Medco Yemen Malik Ltd by 21.25%, Hood Oil Limited 21.25% and YOGC 15%. (T05/TW)