MedcoEnergi Sells Its 100% Interest in Bawean PSC
Jakarta, September 5, 2016 – PT Medco Energi Internasional Tbk and its subsidiary Medco Bawean (Holding) Pte Ltd (together as “MedcoEnergi” or the “Company”), have entered into a Sale and Purchase Agreement dated 1 September 2016 with Hyoil (Bawean) Pte Ltd (“Hyoil”), to divest 100% interest in Bawean PSC through the sale of shares in Camar Resources Canada Inc (“CRC”) and Camar Bawean Petroleum Ltd (“CBPL”). Bawean PSC is an offshore oil producing asset located off the coast of East Java, 1H 2016 production from Bawean was approximately 670 bopd.
The Company has operated the Bawean PSC since 2004 through its holding in CRC. The Bawean PSC will expire in 2031 following the 20 year contract extension granted by the Government of Indonesia in 2010.
Roberto Lorato, CEO, said that “This divestment is aligned with our plans to rationalize our portfolio in order to focus on higher growth assets. The divestment will create value for both MedcoEnergi and HyOil shareholders. HyOil is better placed to further explore and develop Bawean PSC and will do so with the support of an experienced team.”