Friday, March, 24, 2023 11:46:24
  •  Shares of Ophir Energy went up by about 35% when the news of Medico Energi’s interest in the company emerged.
  •  The merger would be adding Ophir’s 25,000 barrels of oil per day production capacity to that of Medco’s 85,000 barrels of oil per day.
PT Medco Energi Internasional Tbk (Medico), a publicly-listed Indonesian oil & gas company, is reportedly in takeover discussions with UK-based oil & gas production & exploration company, Ophir Energy plc. Reports cite, the possible tie-up between the two companies would be creating a new oil powerhouse in the Southeast Asian oil & gas industry, as the merger would be combining Ophir’s output of 25,000 oil barrels per day with Medco’s 85,000 oil barrels per day. According to a report by S&P Global Platts, the shares of the London-listed oil & gas company began trading at a much higher level, valuing the company at approximately GBP325 million ($414 million) after news of Medco’s interest in the British company emerged. The Research Director at Wood Mackenzie, Angus Rodger stated that it is a bold step taken by the Indonesian company and, if successful, would be creating a Southeast Asian upstream powerhouse. Rodger further added that the move would catapult the company to become Southeast Asia’s seventh biggest non-NOC (National Oil Company) upstream producer, positioning it above BP & Hess and just below Total SA & Repsol. Meanwhile, Ophir was severely affected by the oil price drop of 2014 and has since had difficulties in looking for a partner that would be able to finance its $1.2 billion Fortuna deep-water liquefied natural gas (LNG) project located in Equatorial Guinea — a primary reason for the exit of company’s shareholders. The group shares have dropped by as much as 90% over the last five years. According to reports, the company has confirmed that discussions were underway but has further stated that it is uncertain whether an offer would be made.