South East Asian energy company MedcoEnergi to acquire operating interests in two production sharing contracts in South Sumatra, Indonesia from Repsol for up to $90m. The deal includes a 45% stake in the Sakakemang PSC and an 80% interest in the South Sakakemang PSC pending approval.

The Sakakemang PSC, adjacent to Medco’s Corridor PSC, has received development plan approval in South Sumatra. The Corridor PSC, a conventional onshore gas field, comprises seven gas fields and one oilfield. MedcoEnergi recently purchased the Corridor PSC from Repsol for $425m.

MedcoEnergi CEO Roberto Lorato stated that the acquisitions strengthen the company’s strategic position in South Sumatra and Java’s integrated gas value chain. The company’s expansion strategy aligns with Indonesia’s national energy security objectives.

In addition to the acquisitions, MedcoEnergi increased its stake in Transportasi Gas Indonesia (TGI) to 40%. TGI’s pipeline network transports natural gas from Medco’s Corridor PSC and other suppliers in South Sumatra and Jambi including Riau, Batam, and Singapore.

MedcoEnergi focuses on oil and gas exploration and production in Indonesia and beyond. The company operates a portfolio of production assets and strategically extends its reach across South East Asia, the Middle East, and South Africa. Subsidiaries in Thailand recently received approval for an extension of the Bualuang oilfield’s production period in the Gulf of Thailand.

Read more at Yahoo Finance: MedcoEnergi to acquire stake in Repsol’s South Sumatra assets