Wednesday, December 1, 2010

Pertamina cancel to acquire Medco

PT Pertamina, Indonesia state owned oil company, cancel the plan to acquire a stake in Encore Energy Ltd., the parent of PT Medco Energi Internasional Tbk, after a deadline for the deal expired. The exclusive period between Pertamina and Encore International Ltd. to evaluate the stake purchase plan ended yesterday and the two companies agreed not to do the transaction.
Encore International owns 60.6 percent stake in Encore Energy. Pertamina, was signed an agreement to buy Encore International' s stake in Encore Energy, which would have resulted in the company owning a 27.9 percent stake in Medco.
Medco, Indonesia's largest listed oil company, dropped 3.7 percent to IDR3,225 a share today, the lowest in two months. The stock has risen about 32 percent this year, compared with a 42 percent gain in the benchmark Jakarta Composite Index.
Pertamina and Medco will jointly develop oil assets in Libya. Medco has drilling rights in the Area 47 oil and gas block in the African country, which is expected to produce 50,000 barrels a day by 2014. Pertamina and Medco also own 29 percent and 20 percent respectively of the Donggi-Senoro liquefied natural gas plant on Sulawesi in eastern Indonesia.

No comments: