UK-based upstream oil and gas firm Ophir Energy has received a takeover offer from Indonesian company Medco Energi Internasional.

According to Refinitiv data, it had a market capitalisation of £252.5m at the close of 31 December 2018.

According to Ophir, under UK acquisition rules, the Jakarta-listed PT Medco Energi Global has until 28 January to make a firm cash offer.

Ophir added that there could be ‘no certainty’ that a firm bid will be made by Medco.

“Medco would also be able to enhance its regional footprint and diversify its portfolio, which is currently heavily focused on Indonesia.”

Ophir is an exploration and production company focused on Asia and Africa. It has a 45% participating interest in the Sampang field in Indonesia. It has assets in Indonesia, Malaysia, Thailand, Vietnam, Tanzania and Equatorial Guinea, in addition to exploration acreage in Mexico and Bangladesh.

In December 2018, the company announced the discovery of gas at the Paus Biru-1 exploration well at Sampang.

Ophir’s production currently stands at 25,000 barrels of oil equivalent per day (boepd). If the deal materialises, Ophir’s production, along with Medco’s stated 2018 target of 85,000boepd, would enable the merged entity to become a leading upstream producer in South-East Asia, which is currently dominated by Hess, BP, Repsol and Total.

Medco would also be able to enhance its footprint, which is currently heavily focused on Indonesia. It has assets in the Middle East and North Africa.

The firm has a $900m market capitalisation and operates across three major segments, namely oil and gas, power, and mining.

Medco also operates gas, geothermal and hydropower plants in Indonesia through its 88% consolidated interest in Medco Power and has a 39% non-consolidated interest in a copper and gold mine in Indonesia.