Jakarta. Indonesian listed oil and gas producer Medco Energi Internasional has completed the acquisition of ConocoPhillips's subsidiaries in Indonesia and Singapore and plans to start producing oil and gas in the South Natuna Sea, the company said on Thursday (17/11).
South Natuna Sea Block B, which was previously operated by ConocoPhillips Indonesia, is expected to produce 19,279 barrels of oil and 195.7 million standard cubic feet of gas per day. It will be operated by Medco, which has a 40 percent stake in the block.
Medco, controlled by tycoon Arifin Panigoro, will also operate the West Natuna Transportation System – a gas pipeline – and an onshore receiving facility in Singapore, which was previously operated by ConocoPhillips.
MedcoEnergi chief executive Roberto Lorato said the company's top priority is to maintain security of operations and continuity of its business, while continuing with exploration.
"We will also maintain our scale of operation and infrastructure, including health, safety and environmental standards," Lorato said in a statement on Thursday.
Medco president director Hilmi Panigoro described the acquisition of ConocoPhillips as an important milestone.
Medco Energi also completed the acquisition of Newmont Nusa Tenggara from United States-based mining giant Newmont mining in early November. The company, which is now known as Amman Mineral Nusa Tenggara, is a joint venture between Medco Energi and investment firm AP Investment.
Medco acquired an 82.2 percent stake in the miner for $2.6 billion.