Pertamina to buy stake in Medco Energi

The Indonesian government confirmed that state oil and gas company PT Pertamina plans to acquire a majority stake in PT Medco Energi International. State-Owned Enterprises Minister Mustafa Abubakar said Pertamina would take over the stake currently held by PT Encore Energy, a company owned by prominent Indonesian conglomerate Arifin Panigoro, through Pertamina subsidiary PT Pertamina Hulu Energy (PHE). The acquisition is now under negotiation, Abubakar said. The acquisition is part of PHEs expansion program to further strengthen its oil and gas exploration and production operations, he said. Although Pertamina has not yet publicly announced the acquisition, Mustafa said that the company had reported the plan to his office and he expects negotiations to be completed before the end of the year. (October 8, 2010)