MedcoEnergi to Acquire Interests in Indonesian Assets

PT Medco Energi Internasional Tbk said it has entered into agreements valued at around $90 million to acquire interests in two production sharing contracts in South Sumatra, Indonesia.

MedcoEnergi is acquiring a 45 percent operating interest in the Sakakemang production sharing contract (PSC) and an 80 percent operating interest in the South Sakakemang PSC, subject to the approval of the Indonesian government, the company said in a news release.

The Sakakemang PSC has an approved Plan of Development from the Indonesian Government and is adjacent to the Medco-operated Corridor PSC. The acquisition follows the recent expansion of the Corridor PSC, and the award of the South Sumatra Amanah exploration PSC to Medco, according to the release.

Further, in a series of separate transactions, MedcoEnergi said it has acquired additional interest in PT Transportasi Gas Indonesia (TGI), boosting its effective ownership to 40%. TGI transports natural gas from MedcoEnergi’s Corridor PSC and other South Sumatra–Jambi suppliers through its pipeline network to buyers in Riau, as well as Batam and Singapore.

This consolidation of the MedcoEnergi footprint is consistent with its strategy of “acquiring assets with significant growth potential, established infrastructure, and strong market access in well-understood regulatory frameworks,” the company said.

The acquisitions “strengthen the company’s strategic position in South Sumatra and Java’s integrated gas value chain,” MedcoEnergi CEO Roberto Lorato said.

“Our reserve base and ownership in strategic infrastructure secure access to long-life cash-generating assets and enhance MedcoEnergi’s role in supporting Indonesia’s energy needs,” he added.

First Half Operational Performance

Earlier in the month, MedcoEnergi reported that it delivered “resilient performance in the first half of 2025,” supported by stable production, disciplined cost control, and a diversified portfolio.

The company maintained average oil and gas production approaching guidance, while continuing to improve efficiency through initiatives such as fuel gas reduction, operational optimization, and integration of renewable energy projects, according to an earlier statement.

MedcoEnergi said it plans to continue advancing its exploration and development portfolio, optimizing existing assets, and investing in renewable energy projects, including the acquisition of a 24 percent participating interest in the Corridor PSC from Repsol.

In oil and gas, ongoing development drilling and facility improvement are expected to sustain production levels, with a full-year 2025 target of 155,000 to 160,000 barrels of oil equivalent per day (boepd), the company said, adding that it continues to evaluate new opportunities in both the domestic and regional markets.

In the power sector, MedcoEnergi said it is “confident” about meeting its 2025 production target of 4,300 gigawatt-hours, driven by a strong focus on expanding renewable energy capacity, particularly geothermal, solar photovoltaics, and gas, as a transition resource.

As of July, the company said it has recorded a reduction of more than 1.5 million tons carbon dioxide equivalent of scope 1 and 2 greenhouse gas emissions compared to its 2019 baseline, surpassing its target of 1.1 million tons.

Amri Siahaan, chief administrative officer of MedcoEnergi, said, “MedcoEnergi continues to deliver strong results despite a dynamic market environment. Our diversified portfolio, disciplined financial management, and commitment to sustainability position us strongly for the future. We will continue to invest prudently in oil, gas, and power, while accelerating our contribution to the energy transition and creating long-term value for all stakeholders”.

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