PT Medco Energi Internasional has gained a 35% participating interest in the South Natuna Sea Block B in Indonesia, following a deal to buy Inpex's Indonesian subsidiary Inpex Natuna Ltd.
The agreement is between Japan's Inpex and PT Medco Energi Internasional subsidiary PT Medco Daya Sentosa.
Following its acquisition of a participating interest in the block in 1977, the Inpex began producing crude oil in 1979 and natural gas in 2001.
Thereafter, crude oil, natural gas, and liquid petroleum gas development and production activities took place at multiple oil and gas fields in the block.
After almost 40 years since the start of oil production, the contribution of Inpex Natuna in terms of income and cash flow is expected to become relatively limited.
Hence, with a view to optimizing the group’s global asset portfolio, Inpex said it decided to sell all its shares in Inpex Natuana to PT Medco.
In terms of the impact on the company’s consolidated financial forecasts for the year ending 31 March 2017, Inpex expects an impact to the net income attributable to owners of parent of around 13.5 billion yen mainly as a result of reporting approximately 16 billion yen as non-operating expenses, it said.