Indonesia's state-owned PT Pertamina acquired 24.53 percent of the shares in France-based oil extraction and production company Maurel & Prom from Pacifico, with the former pressing ahead with the strategy to bolster its upstream presence globally, a company official said, as reported Tuesday in local daily The Jakarta Post.
Pertamina penned the agreement Monday to acquire all of Pacifico's Maurel & Prom shares for $4.71 (EUR 4.20) per share, plus a $0.56 (EUR 0.5) earn-out per share if global benchmark Brent crude price exceeds $65 per barrel during all trading days within 90 consecutive calendar days between Jan. 1, 2017 to Dec. 31, 2017.
"This impressive step demonstrates Pertamina’s strong commitment to ensure Indonesia’s energy security," Pertamina vice president of corporate communications Wianda Pusponegoro Wianda said Monday, as quoted by The Jakarta Post.
The transaction is subject to regulatory approval from relevant authorities.
According to Maurel & Prom's press release, Pertamina indicated that "Maurel & Prom will become an international development platform and that the experience and know-how of its teams are key for the success of its strategy."
Maurel & Prom's upstream activities focused mostly on Africa, where it has onshore production assets in Gabon and Tanzania, as well as a 21.37 percent stake in Seplat Petroleum Development Co. Plc, a major local operator in petroleum rich Nigeria.
Elsewhere, Maurel & Prom holds upstream asset interests in Namibia, Canada, Colombia, France and Italy.
In Southeast Asia, the company has a 40 percent stake in Block M2, an exploration acreage operated by Vietnam Oil and Gas Group (PetroVietnam) who owns 45 percent interest, while the remaining 15 percent interest is held by Eden Group Co.
Pertamina has plans to raise hydrocarbon supplies to meet increasing energy demand in Indonesia, with the country having been a net oil importer for over a decade. According to BP Statistical Review of World Energy 2016, Indonesia's net oil deficit widened to 803,000 barrels per day in 2015 -- equivalent to almost half of the country's oil consumption last year -- from 761,000 barrels in 2013.
Industry sources told Rigzone that the acquisition of Maurel & Prom forms part of a plan to address increasing energy demand as Indonesia continues to woo foreign upstream investors to boost local crude oil and natural gas production.
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