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Local Energy Giant Medco Sells Rights To Tunisia Oil and Gas Blocks for $58m
Ririn Radiawati Kusuma | October 30, 2011

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Indonesia’s Medco Energi Internasional has sold its rights in oil and gas blocks in Tunisia for $58 million, part of a strategy to focus on developing blocks it operates itself, an official has said.

Medco Energi will sell its entire stake in Medco Tunisia Anaguid, which holds interests in Tunisia’s Durra concession and the Anaguid exploration area, to OMV (Tunesien) Production, a subsidiary of the Austria-based OMV Exploration & Production, a leading energy group in Central and Southeastern Europe.

OMV previously held operating rights at both the concession and exploration areas. By selling its entire stake in Medco Tunisia Anaguid, Medco Energi gave up a 20 percent interest in Durra and a 40 percent interest in Medco Anaguid.

“The sales of Medco Anaguid’s shares will not impact our reserves profile or potential revenues,” said Lukman Mahfoedz, president director and CEO of Medco Energi. “On the contrary, it shows our new strategy that emphasizes our focus in funding and developing oil and gas working areas that are directly operated by Medco Energi.

“Nevertheless, Medco Energi remains committed to pursuing any available opportunities to invest in other oil and gas exploration and production areas in Tunisia.”

Medco Energi still sees Tunisia as an attractive investment destination and plans to continue to do business in the country, Mahfoedz said.

“A discussion with the Ministry of Industry and Technology and the Directorate of Energy in Tunisia to gain opportunities in other blocks has already been started where the company would hold direct operatorship,” he said.

Companies that are oil and gas block operators can set production targets and determine key corporate actions to develop the block.

Medco Energi is Indonesia’s largest listed oil and gas company. Apart from Indonesia, it has operations across the world, including in Oman, Yemen, Libya and the Gulf of Mexico.