Medco considers cash offer for Ophir Energy

Indonesian E&P company PT Medco Energi Global PTE is in talks concerning the potential acquisition of London-based independent Ophir Energy.

Offshore staff

LONDON – Indonesian E&P company PT Medco Energi Global PTE is in talks concerning the potential acquisition of London-based independent Ophir Energy.

This could take the form of a cash offer for the entire issued and future share capital of Ophir.

Wood Mackenzie research director Angus Rodger said that Medco would have to make a clear binding offer by Jan. 28 if a deal is to go forward.

Ophir’s upstream portfolio includes field interests offshore Thailand, Vietnam, Indonesia, Malaysia, Equatorial Guinea and Tanzania, and exploration acreage offshore Mexico and in Bangladesh.

If the takeover does go ahead it would create “a Southeast Asian upstream powerhouse,” Rodger added, with total production (including Ophir’s current 25,000 boe/d) of 110,000 boe/d, of which 101,000 boe/d is within the region.

It would also make Medco the seventh largest non-NOC upstream producer in Southeast Asia, ahead of Hess and BP, and just behind Repsol and Total.

“For Medco a successful acquisition would substantially increase its regional footprint and diversify its mature, Indonesia-heavy portfolio. It would also bulk up its non-Asian exposure by adding growth options in Tanzania and Equatorial Guinea, to add to its existing positions in Libya, Oman, Yemen, Tunisia and the US,” he continued.

“It would also offer exposure to the global upstream hotspot that is offshore Mexico, where Ophir recently secured participation in three blocks.

Last year Ophir acquiredSantos’ Asian assets, galvanizing its production with the company’s proposed Fortuna FLNG project offshore Equatorial Guinea struggling to attract finance.

Ophir announced earlier this week that it was still awaiting a response from the Equatorial Guinea Ministry of Mines and Hydrocarbons (MMH) concerning its application for an extension of the surrounding offshore block R license.

At the same time, it continues to engage with the MMH and potential investors in the Fortuna development.

01/02/2019

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