Medco to sell Apexindo later 2004

Medco to sell Apexindo later 2004

JAKARTA: Medco Energi Internasional, an Indonesian oil and gas company, on Tuesday said it plans to dispose of a majority stake in unit PT Apexindo Pratama Duta through a strategic sale.

"We expect to complete the sale of Apexindo later this year or by the first quarter of next year," Medco's Finance Director Sugiharto told reporters.

Medco has a 77.53 percent stake in Apexindo, which is involved mainly in oil drilling. Sugiharto didn't elaborate, but said Medco over the next five year will focus on its upstream, power plant and petrochemical operations.

"After the sale, we will have only a minority stake in Apexindo," Sugiharto said. He didn't provide figures for the value of the unit sale.

To boost its revenue, Medco is also planning to acquire two oil and gas blocks in Indonesia, as well as to build a power plant on Batam Island, he said. Sugiharto said the company also expects to complete the takeover of Australian mid-sized energy company Novus Petroleum Ltd. later this month.

"We now have a 92.33 percent stake in Novus and expect to buy the remaining stake on Aug. 20," he added. -- DJ