Repsol to be taken over by MedcoEnergi for South Sumatra oil blocks

MedcoEnergi, an Indonesian company, announced on Tuesday that it had agreed to purchase large stakes of two South Sumatra oil-and-gas blocks from Repsol Spain for approximately $90 million.

The oil and natural gas explorer announced that it would take over operatorship of both blocks, subject to Indonesian approval.

Repsol stated in 2019 that Sakakemang has 2 trillion cubic feet recoverable gas based on preliminary estimates. South Sakakemang remains in the exploration phase.

Roberto Lorato, Chief Executive Officer of MedcoEnergi, said that the acquisitions valued at about $90 million will strengthen our strategic position in South Sumatra, and also enhance our role in the integrated value chain for gas in Java.

Repsol didn't respond to an immediate request for comment.

In a statement, MedcoEnergi also stated that it had increased its stake to 40% in PT Transportasi Gas Indonesia. The gas is supplied by the pipeline operator to Riau and Singapore from the Corridor Block. Reporting by Bernadette Munthe, Writing by Fransiska Nanangoy, Editing by David Goode

(source: Reuters)