Latest news with #Repsol
Yahoo
2 days ago
- 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
2 days ago
- Business
- Yahoo
Repsol Sells Indonesia Gas Stake to Medco for $425 Million
Repsol, S.A. REPYY has taken another decisive step in realigning its upstream portfolio with the sale of a 24% non-operated interest in Indonesia's Corridor Block. The $425 million transaction, finalized with Medco Energi, is part of a broader rotation strategy. The company will streamline the asset base to concentrate on core geographies where it holds a competitive advantage, including the United States and Brazil. This transaction highlights Repsol's continued push to strengthen its financial position and concentrate on more profitable assets. For Medco — a major force in Southeast Asia's energy sector — the acquisition aligns well with its regional growth strategy. The deal was executed via the divestment of Fortuna International (Barbados), Inc., and is expected to close by the third quarter of 2025, subject to standard regulatory approvals. Through this transaction, Repsol completes the exit from the Corridor Block, handing over full control of its interest to Medco. The Corridor Production Sharing Contract ('PSC') covers seven active gas fields and one oil field in South Sumatra, which is recognized as one of Indonesia's key upstream gas assets. While funding specifics have not been publicly shared, insiders suggest the purchase will be financed through a mix of internal cash flow and debt. After the divestment, Medco will hold a commanding 70% stake in the Corridor Block, with the remaining 30% owned by Indonesia's state-run PT Pertamina Hulu Energi Corridor. This deal supports Medco's commitment to acquire and manage high-value assets with strong cash flow potential. Medco's growing control of the Corridor Block, with 70% operating stake, can be seen as a bold and strategic step toward strengthening its position as a key gas supplier in Southeast Asia. The acquisition not only expands Medco's upstream portfolio but also enhances its financial resilience, thanks to the asset's proven production and established infrastructure. The Corridor Block, located onshore in South Sumatra, contributed roughly 19,000 barrels of oil equivalent per day (boepd) to Repsol in 2024 — 3% of its total production of 571,000 boepd. This asset underwent major changes in late 2021 when Medco acquired ConocoPhillips Indonesia Holding Ltd., which owned 100% of ConocoPhillips (Grissik) Ltd., the former operator and principal stakeholder holding a 46% participating interest prior to its exit. In December 2023, the PSC was renewed and extended until 2043, transitioning from a gross split model to a cost recovery scheme. This revised structure is said to offer more investor-friendly terms, enhancing the long-term sustainability of operations. By divesting this asset, Repsol expects to reduce net debt by approximately $350 million and see a positive $70 million impact on its 2025 income. These financial gains enhance its flexibility to reinvest in higher-margin opportunities and accelerate low-carbon energy ambitions. Repsol's exit from the Corridor Block is not a retreat but a recalibration. The company is actively pivoting toward cleaner energy and strengthening its upstream position in strategic regions. The reallocation of capital from non-core assets allows it to double down on projects that are future-focused, resilient and aligned with sustainability commitments. Repsol explores, develops and produces crude oil products and natural gas, transports petroleum products and liquefied petroleum gas, and refines petroleum. Currently, REPYY has a Zacks Rank #4 (Sell). Investors interested in the energy sector might look at some better-ranked stocks like BKV Corporation BKV, Subsea 7 S.A. SUBCY and Oceaneering International, Inc. OII. While BKV and Subsea 7 currently sport a Zacks Rank #1 (Strong Buy) each, Oceaneering carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank stocks here. BKV Corporation is an energy company that produces natural gas from its owned and operated upstream businesses. The Zacks Consensus Estimate for BKV's 2025 earnings indicates 338.18% year-over-year growth. Subsea 7 operates as an engineering, construction and services contractor to the offshore energy industry worldwide. The Zacks Consensus Estimate for SUBCY's 2025 earnings indicates 95.52% year-over-year growth. Houston, TX-based Oceaneering is one of the leading suppliers of offshore equipment and technology solutions to the energy industry. The Zacks Consensus Estimate for OII's 2025 earnings indicates 57.02% year-over-year growth. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Oceaneering International, Inc. (OII) : Free Stock Analysis Report Repsol SA (REPYY) : Free Stock Analysis Report Subsea 7 SA (SUBCY) : Free Stock Analysis Report BKV Corporation (BKV) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Forbes
3 days ago
- Business
- Forbes
Tycoon Hilmi Panigoro-Backed Medco Energi To Buy Repsol's Indonesian Gas Field Stake For $425 Million
The exhibit by Medco Energi International Tbk at the Indonesia Petroleum Association (IPA) ... More Convention in Tanggerang, Banten, Indonesia, on Tuesday, July 25, 2023. Photographer: Dimas Ardian/Bloomberg Medco Energi Internasional—backed by tycoon Hilmi Panigoro and his family—has agreed to buy Spanish energy giant Repsol's 24% stake in the Corridor Block for $425 million, giving it a controlling interest in Indonesia's third-largest gas field. Once the transaction is completed in the third quarter of this year, Medco's stake in the Corridor Block will increase to 70%, while Indonesian state-run Pertamina Hulu Energi Corridor will hold the rest, the Jakarta-listed company said in a statement on Thursday. "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,' Hilmi Panigoro, president director of Medco Energi said in the statement. Located in South Sumatra, the Corridor Block—comprising seven gas fields and an oil field—produced 58,000 barrels of oil equivalent per day last year. It has long-term contracts with customers in Indonesia and Singapore. Medco Energi has been scaling up its oil and gas assets. Last year, it produced over 124,000 barrels of oil equivalent per day, according to its latest annual report. With a net worth of $3.25 billion, Panigoro and his family are among the wealthiest in Indonesia. Medco Energi, which was founded in 1980 by his late brother Arifin, teamed up with billionaire Agoes Projosasmito in 2016 to buy Amman Mineral for $2.6 billion. The mining firm went public in 2023, raising $710 million from its IPO.
CNA
3 days ago
- Business
- CNA
Repsol sells stake in an Indonesian gas operation for $425 million
Spanish energy company Repsol said on Thursday it has agreed to sell a 24 per cent stake in Indonesia's Corridor Block gas operation to Jakarta-listed Medco Energi for $425 million. The deal is part of Repsol's strategy to dispose assets to raise cash to fund investments in renewable energy. According to its own calculations, the sale will have a positive impact of about $70 million on its full-year income and it will help reduce its net debt by about $350 million, Repsol said. The company expects the transaction to be closed in the third quarter of 2025.
Reuters
3 days ago
- Business
- Reuters
Repsol sells stake in an Indonesian gas operation for $425 million
June 26 (Reuters) - Spanish energy company Repsol ( opens new tab said on Thursday it has agreed to sell a 24% stake in Indonesia's Corridor Block gas operation to Jakarta-listed Medco Energi ( opens new tab for $425 million. The deal is part of Repsol's strategy to dispose assets to raise cash to fund investments in renewable energy. According to its own calculations, the sale will have a positive impact of about $70 million on its full-year income and it will help reduce its net debt by about $350 million, Repsol said. The company expects the transaction to be closed in the third quarter of 2025.
