Medco Energi has signed an agreement to acquire ConocoPhillips Indonesia (CIIL) and ConocoPhillips Singapore Operations (CSOP).

CIIL operates the South Natuna Sea Block B PSC (SNSB) with a 40% working interest. It is also the operator of the West Natuna Transportation System (WNTS).

CSOP operates the onshore receiving facility (ORF) in Singapore.

Medco Energi CEO Roberto Lorato said: “Once effective, this acquisition will add substantial gas and liquids reserves and increase MedcoEnergi’s daily production by over 35%.

"This acquisition will add substantial gas and liquids reserves and increase MedcoEnergi’s daily production by more than 35%."

“With solid cash-flows despite the current low oil price, the transaction is immediately accretive. Above all, we acknowledge SNSB’s world class operating scale and infrastructure, it’s highly experienced and proven operating team and best-in-class health, safety, and environmental record.”

Together with the Malaysian pipeline, the WNTS infrastructure will continue to be the core point to commercialise existing discoveries, as well as perform ongoing exploration activities within the Natuna area.

Medco Energi president director Hilmi Panigoro said: “As a national private oil and gas company, we continue to seek opportunities to grow MedcoEnergi’s contribution to the Indonesian economy.

“This transaction will strengthen MedcoEnergi’s footprint in Indonesia and significantly enhance its upstream oil and gas capabilities through the integration of world-class offshore operations.”

The transaction is slated for completion in the fourth quarter of this year.