Medco confirmed Block A acquisition from Exxon

Listed energy company PT Medco Energi Internasional Tbk. (MedcoEnergi) confirmed my earlier report that it won the bidding to acquire ExxonMobil's 50% interest in Block A oil and gas in Aceh.

According to its letter to Jakarta Stock Exchange (JSX) today, Medco Energi through its wholly owned subsidiary, Medco Far East Limited, and its partners, Japan Petroleum Exploration Co, Ltd. (Japex), and Premier Oil Plc. (Premier), have signed a Share Sale Agreement (SSA) with ExxonMobil Block A Investment Limited (ExxonMobil) to purchase 100% shares of Mobil Block A Limited (MBAL), a wholly owned subsidiary of ExxonMobil. MBAL holds 50% of interests in Block A Production Sharing Contract (Block A PSC) located in Nanggroe Aceh Darussalam province.
Upon the completion, MedcoEnergi, Japex, and Premier will each hold 33-1/3% of shares in MBAL, respectively. The remaining 50% interests in the Block A PSC are held by ConocoPhillips Company.
MedcoEnergi and its partners will change the name of MBAL immediately and report the changes to The Indonesian Oil and Gas Implementing Body (BP MIGAS).
The Block A PSC is located in the province of Nanggroe Aceh Darussalam in northern tip of Sumatra island, approximately 45 kilometres west of the giant ExxonMobil-operated Arun gas field. The PSC term period is 30 years which will expire in August, 31, 2011.

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