Indonesia's Medco Energi Completes Acquisition of Chinook's Tunisian Oil, Gas Assets

MedcoEnergi, through its wholly-owned subsidiary Medco Tunisia Petroleum, has completed the purchase of 100% of Tunisian oil and gas assets of Storm Ventures International (SVI), a subsidiary of Chinook Energy, for $114.03 million, excluding an amount payable for working capital, the Indonesian company announced Tuesday.

Amount payable for working capital is $ 13.7 million. 

SVI’s interest in Tunisia comprises four exploration areas, two development areas and two production areas with concession periods of either 30 or 50 years.

Out of these eight areas, five are onshore and located in the Ghadames Basin (Adam, Sud Remada, Bir Ben Tartar, Jenein and Borj El Khadra); and three are offshore (Cosmos, Hammamet and Yasmin), located in the Pelagian Basin offthe northeast coast of Tunisia. MedcoEnergi is the operator for six blocks, i.e. Sud Remada, Bir Ben Tartar, Jenein, Cosmos, Hammamet and Yasmin.

Current production is approximately at 2,800 BOPD from Adam and Bir Ben Tatar blocks. The future production is envisaged to increase to around 16,000 BOEPD from in-fill well drilling of the existing producing blocks and the development of the Cosmos, Yasmin and Fushia fields (scheduled for completion in 2018), Medco said.

Total estimated net recoverable resources by an independent reserves evaluator, InSite Petroleum Consultants Ltd., is approximately 33.8 MMBOE (3P reserves and contingent resources) as of 31 December 2013, the company added.