Latest news with #MedcoEnergiInternasional
Yahoo
27-06-2025
- Business
- Yahoo
Medco Energi acquires stake in Repsol's Indonesian gas operation for $425m
Indonesian oil and gas operator Medco Energi Internasional has reached an agreement with Spanish energy company Repsol E&P to acquire a 24% stake in the Corridor Production Sharing Contract (Corridor PSC), indirectly held by Fortuna International, for $425m (Rp6.88trn). The transaction is expected to enhance Medco Energi's portfolio, with completion anticipated in the third quarter of 2025 (Q3 2025). The Corridor PSC, situated onshore in South Sumatra, Indonesia, comprises seven producing gas fields and one oilfield. The gas from these fields is sold under long-term contracts to buyers in Indonesia and Singapore, ensuring a stable revenue stream. MedcoEnergi president director Hilmi Panigoro said: "This acquisition supports our strategy of owning and developing high-quality, cash-generative assets and reaffirms our commitment to national development where natural gas is a vital bridge to a lower-carbon future.' Medco Energi reported EBITDA (earnings before interest, taxes, depreciation and amortisation) of $332m in Q1 2025, surpassing its figures from Q4 2024. This financial uptick is attributed to effective cost management strategies, although it has been partially offset by seasonal variations leading to reduced gas demand. Repsol, with a presence in more than 20 countries, is focusing on its upstream business to prioritise more lucrative assets. This divestment aligns with its strategy to concentrate on assets with higher profitability and cash generation capabilities. The sale is expected to positively influence Repsol's financials, with an estimated $70m boost to its annual income, reported Reuters. Moreover, the transaction will contribute to a reduction in Repsol's net debt of approximately $350m, underscoring the deal's strategic financial benefits. In December last year, GeoPark signed binding sales and purchase agreements to acquire Repsol's upstream oil and gas assets in Colombia. "Medco Energi acquires stake in Repsol's Indonesian gas operation for $425m" was originally created and published by Offshore Technology, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
Yahoo
21-05-2025
- Business
- Yahoo
Indonesia Signs Swap Deals to Ensure Domestic Gas Supply
Indonesian natural gas producers have signed a multi-party gas swap agreement with Indonesian and Singaporean traders aimed at increasing gas supply security in western Indonesia. As gas production in Sumatra in western Indonesia is falling, local companies and regulators looks to redirect domestic gas supply to meet local demand while selling overseas gas from other areas. In a deal signed on Wednesday, Indonesian gas producer Medco Energi Internasional signed a multi-party swap agreement with companies including state energy firm PT Pertamina and Singaporean and Indonesian gas traders Oil Natuna Sea B.V., Star Energy (Kakap) Ltd., Sembcorp Gas Pte Ltd., Gas Supply Pte Ltd., Petrochina International Jabung Ltd., and PT Perusahaan Gas Negara (Persero) Tbk (PGN). Under the agreement, specific gas volumes will be supplied to Singapore from the West Natuna Supply Group, replacing volumes currently delivered from Corridor Block and Jabung PSC, the so-called South Sumatra Sellers. These redirected volumes will then be allocated to meet domestic gas demand, with PGN serving as the domestic buyer. 'This collaboration demonstrates a strong example of productive synergy between upstream operators, the regulator, partners and buyers in ensuring gas supply across both domestic and international markets,' MedcoEnergi director and chief operating officer, Ronald Gunawan, said in a statement. Indonesian gas demand is rising, while production at some legacy gas fields is dropping. The country has started replacing diesel as a fuel in dozens of power plants with LNG, which is set to boost demand for natural gas in one of the world's top LNG exporters. Last month, Indonesia awarded five strategic oil and gas blocks to international and domestic players in a bid to reverse its decade-long production decline and bolster energy security. The awards are part of Indonesia's broader upstream revival strategy, with nearly 60 additional blocks expected to be offered over the coming years. 'The government hopes these auction winners will be able to contribute to Indonesia's energy security ahead,' said Tri Winarno, a senior official at the Ministry of Energy and Mineral Resources. By Charles Kennedy for More Top Reads From this article on
