Medco clinches deal for Ophir Energy
Indonesian E&P company Medco Global has agreed to pay £390.6 million ($512 million) to acquire London-based independent Ophir Energy.
LONDON – Indonesian E&P company Medco Global has agreed to pay £390.6 million ($512 million) to acquire London-based independent Ophir Energy.
The acquisition is subject to certain conditions including the receipt of clearances from the relevant authorities in Tanzania (where Ophir is a partner to Shell in blocks containing various deepwater gas discoveries), and Ophir not losing all or substantially all of itsBualuang field interests in the Gulf of Thailand.
Roberto Lorato, director and CEO of Medco, said: “The enhanced scale, diversification and growth opportunities...further strengthen Medco’s position as a leading independent oil and gas player inSoutheast Asia.
“In Medco’s view, the combined business will hold a more balanced regional portfolio of producing and development assets, better able to withstand macroeconomic volatility, and will have meaningful production and cash flows to improve Medco’s credit position and the ongoing development of the portfolio.”
Last yearOphir acquired Santos’ E&P interests in Indonesia and elsewhere in the Asia/Pacific region as it sought to develop a new area of business. It was recently obliged to relinquish block R offshore Equatorial Guinea after failing to secure financial backing for a floating LNG-based development.