Medco Receives a $450m Syndicated Loan to Fund Corridor Block Acquisition

- 15 December 2021 11:10 WIB
Illustration. A golden piggy bank
Illustration. A golden piggy bank

JAKARTADAILY - PT Medco Energi Internasional Tbk (MEDC), an Indonesian oil and gas company listed in the Indonesian Stock Exchange (IDX), announced on Monday that its subsidiary Medco Energi Global Pte (MEG) had secured a Syndicated loan of US$450 million from ANZ Bank, Singapore Branch, DBS Bank Ltd, ING Bank N.V. Singapore Branch, Morgan Stanley Senior Funding Inc, MUFG Bank Ltd, Standard Chartered Bank (Singapore) Limited.

The company said that the Syndicated loan, which was signed on December 11, 2021, will be used by its subsidiary MEG to acquire the 54 percent interest of ConocoPhillips Indonesia in Corridor block, a major gas-producing block in South Sumatra, and a 35 percent interest in the Transasia Pipeline Company from ConocoPhillips at a total value of US$1,355 billion or around Rp 19.5 trillion (Rp 14,400 per US dollar).

As its holding company, Medco acts as the guarantor of the loan given by the foreign banks to its subsidiary MEG.

ConocoPhillips Indonesia Holding Ltd (CIHL) has recently decided to release all of its interests in the Corridor block to PT Medco Energi Indonesia. CIHL owns 100 percent shares in Conocophillips Grisik Ltd (CPGL) and 35 percent shares in Transasia Pipeline Company Pvt. Ltd. (Transasia).

CPGL is the operator of the Corridor working area in South Sumatra province with 54 percent working interest.

ConocoPhillips reported that the fund from the sale of its assets in Indonesia is aimed to acquire a 10 percent interest in Australia Pacific LNG (APLNG) from Origin energy at a total value of US$1.645 billion (around Rp 24 trillion).

ConocoPhillips is the latest global oil giant that had decided to exit from Indonesia’s oil-gas sector. Previously, Shell had decided to exit from Masela block, which has a giant gas reserve in Maluku, and Chevron from the Indonesia Deepwater Development (IDD) project, which is also a big oil-gas project in East Kalimantan. (*)

Editor: Suksmajati Kumara


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