Puma Energy acquires Medco unit
Publicly listed oil and gas firm PT Medco Energi Internasional (MEDC) signed an agreement to sell a majority stake in its unit, Jakarta-based PT Medco Sarana Kalibaru (MSK), to Swiss-based energy firm Puma Energy LLC. MSK, the liquid fuel storage and distribution subsidiary of MEDC, has annual revenues of approximately US$200 million. The value of the transaction was not revealed. MSK will become PT Puma Medco Petroleum after Puma takes over a 63.88% stake in the company.
Puma Energy is a mid- and downstream unit of Trafigura Beheer BV, a Swiss-based commodity-trading company. In its downstream activities, Puma Energy offers gasoline, kerosene, jet fuel and lubricants, among other products, through a worldwide network of more than 1,300 service stations.
MEDC will reinvest the proceeds of the share sale in Puma Medco Petroleum. Speaking at a press conference in Jakarta, MEDC Operations Director Frilla B. Yaman said the firm’s decision to sell its majority stake in the subsidiary was part of the company’s plan to develop its fuel trading and distribution business in Indonesia.
“We have been mulling the plan since last year, we believe that by forming a partnership with an experienced firm, we will get better value than carrying it out by ourselves,” she said.
MSK’s assets in the downstream sector include a fuel storage facility for high-speed diesel (HSD) in Tanjung Priok International Port in North Jakarta, with a capacity of 22,700 cubic meters. The company also owns a dedicated jetty and truck loading bays, as well as a distribution network to supply diesel fuel to mining firms in Kalimantan and Sumatra.
