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    Medco Agrees to Buy Japex's Stake in Block A in Ache, Indonesia

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Summary

Medco Energi Internasional has agreed to acquire Japex Block A Ltd’s 16.6667 percent interest in the Block A Aceh, Indonesia.

by: Shardul

Posted in:

Asia/Oceania

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Medco Agrees to Buy Japex's Stake in Block A in Ache, Indonesia

Medco Energi Internasional has agreed to acquire Japex Block A Ltd’s 16.6667 percent interest in Block A Aceh, Indonesia.

Upon completion MedcoEnergi will hold a 58.3334 percent operating interest in the block, the company said Monday.

Completion of the transaction is conditional on the approval of the government of Indonesia and the government of Nangroe Aceh Darussalam.

Medco Energi recently awarded the engineering procurement and construction (EPC) contract for the first phase development of the Block A gas project to a consortium of JGC Indonesia and Encona Inti Industri (JEC). First gas will commence in the first quarter 2018.

Medco signed a gas sales agreement with Pertamina in January 2015. As per the deal Medco will deliver 58 billion Btu of gas per day, 198 trillion Btu over 13 years.

The current participating interest in the block is MedcoEnergi 41.6667 percent (operator), KrisEnergy 41.6666 percent, and Japex 16.6667 percent.

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