Mitsubishi Purchases Stake in Indonesia Field
Mitsubishi has acquired all the shares of Tomori E&P Limited, which owns a 20% working interest in the Senoro-Toili natural gas field, from PT. Medco Energi Internasional Tbk, Indonesia's largest private-sector energy company. The purchase price is US $260 million (approx. 21.5 billion yen). The Senoro-Toili natural gas field is located in Central Sulawesi Province, Indonesia.
The Senoro-Toili field is owned 50:50 by wholly owned subsidiaries of PT. Pertamina (Persero), Indonesia's state-owned oil and gas company, and PT. Medco Energi Internasional Tbk. MC acquired a 20% working interest from PT. Medco Energi International Tbk through the acquisition of Tomori E&P Limited. As a result, ownership of the field is now split as follows: PT. Pertamina (Persero) subsidiary (50%), PT. Medco Energi Internasional Tbk subsidiary (30%), and MC subsidiary Tomori E&P Limited (20%).
The field began producing crude oil (approx. 1,900 B/D) in 2005, and will commence development work with the aim of commencing natural gas production in 2014. Natural gas produced at the field will be partially supplied within Indonesia. The remaining amount of the natural gas (approx. 250 million standard cubic feet per day, approx. 1.5 million tons/year LNG equivalent) will be supplied to PT. Donggi-Senoro LNG (PT DSLNG) and contribute to approx. 75% of the required volume for producing LNG that will be exported from the second half of 2014 to Japan and South Korea. PT DSLNG, an LNG production and sales company (approx. 2.0 million tons/year), is 59.9% owned by Sulawesi LNG Development Limited (MC 75%, Korea Gas Corporation 25%), with a PT. Pertamina subsidiary and a PT. Medco Energi International Tbk subsidiary owning the remaining 29% and 11.1%, respectively.
With the acquisition of this working interest, MC will create synergies through the activities of the Donggi-Senoro LNG Project, by being involved in the LNG value chain extending from upstream to downstream. MC and its partners in PT Donggi-Senoro LNG recently made the final investment decision regarding the Donggi-Senoro LNG Project. This will help to ensure stable LNG supplies and raise the value of the entire project. Together with development of the Kangean oil and gas field and operation of Tangguh LNG Project, which MC is also participating in, this move will contribute even further to Indonesia's fast-growing economy.
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