(EnergyAsia, October 15 2012, Monday) — Indonesia’s biggest listed oil company, PT Medco Energi Internasional, will sell a 63.88% stake in its fuel storage and distribution unit, PT Medco Sarana Kalibaru (MSK), to Switzerland’s Puma Energy LLC, the two companies have announced.
Neither company revealed the value of the transaction that will include the formation of a new joint venture firm, PT Puma Medco Petroleum. The deal is expected to complete in early December subject to review by the Indonesian regulatory authority.
The principal assets in the venture include a 22,700-cubic metre fuel storage terminal in Tanjung Priok International Port in northern Jakarta that includes a dedicated jetty, truck loading bays, and a distribution network in Kalimantan and Sumatra to serve the mining industry.
Puma Energy, a subsidiary of trader Trafigura Beheer BV, said the new company will continue to deliver quality fuels including high speed diesel (HSD) to clients throughout Indonesia.
Lukman Mahfoedz, President and CEO of MedcoEnergi, said:
“We have entered into this strategic alliance designed to bring together the strengths and expertise of both companies to create the best fuel trading and distribution business in Indonesia and the surrounding region for the benefit of our customers, employees, as well as other stakeholders in the country.”
Pierre Eladari, Puma Energy’s CEO, said:
“MSK provides Puma Energy with an existing footprint from which to invest and grow. Of particular relevance for the region is our experience in providing large volumes of high quality fuel to industry within countries with strong economic growth, but challenging infrastructures.”
With operations in 34 countries, Puma Energy has grown rapidly in recent years through organic growth and acquiring downstream assets from ExxonMobil, BP and Chevron. Its most recent acquisition announced three months ago, Puma Energy moved to acquire Chevron Kuo Pte Ltd, which owns 70% of Chevron Bitumen Vietnam Ltd.
Jakarta-listed MedcoEnergi focuses on oil and gas exploration and production in Indonesia, Oman, Yemen, Libya and the Gulf of Mexico in the US. It also operates gas-fired, coal power plants and supplies electricity to Indonesia’s state utility PLN.