Indonesia's Medco buys Reliance's stake in Yemen-9 block
06 December 2012
Medco Yemen Malik Ltd, a wholly owned subsidiary of PT Medco Energi Internasional Tbk of Indonesia, has completed the acquisition of Reliance Exploration and Production DMCC's 25 per cent working interest in the production sharing contract (PSC) for Yemen Block-9 with.
Reliance Exploration and Production DMCC is a wholly owned subsidiary of Reliance Industries Ltd (RIL).
The transaction is effective 1 January 2012 and has been approved by the ministry of oil and minerals of Yemen as far back as on 24 November 2012.
MedcoEnergi, however, will effectively own only 21.25 per cent participating interest (after taking into account a proportionate carried share of Yemen Oil and Gas Corporation (YOGC)) in Block 9.
With the acquisition of RIL's participating stake in Block 9, MedcoEnergi will have 21.25 per cent stake in the block, the same as that of Hood Oil Ltd, while YOGC will have 15 per cent stake. Calvalley Petroleum, the operator of the field, will hold the remaining 42.50 per cent stake.
Block 9 is an exploration and production block located in the Hadramaut province of the Republic of Yemen, about 350 km north-east of the Yemeni capital, Sana'a. The block, which is located within the Sayun-Masila basin, has an area of 2,234 square km, in which some of its area has previously been explored.