PT Medco Energi Internasional Tbk and PT Pertamina (LLC) have had an intensive talk on the synergy plan between the two energy companies.
President Commissioner of Medco, Hilmi Panigoro, said the two assess several possible options including merger and operational ties. Both companies will decide which is the preferred option ahead of the end of this year.
"We will continue to review any possible options and we must have firm decision before the end of this year. We can merge half of the business or both companies may cooperate for operating blocks overseas," he said today.
Meanwhile, rumor says that Pertamina plans to acquire shares of Medco International in order to expand its upstream oil and gas business. While asked for confirmation, Hilmi stated that there has not been any negotiation on share ownership.
Then regarding Medco's performance in the first half of 2010, Hilmi said that the business will grow with the support from the rising crude price.
Medco Energi has allocated the US$1.4 billion capital expenditure to finance business expansion in the next three years.
http://www.bisnis.com/en/corporate/1id192906.html
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