The move will allow India’s largest state-owned oil firm to realise its plans of venturing into oil and gas exploration sector.
In a statement IOC Chairman M.S. Ramachandran said, “We have completed due diligence of Medco and are now valuing the company. The board today cleared bidding for acquiring stake in the company.”
“IOC will bid to buy stake in Indonesia’s biggest independent exploration and production company from Thailand’s PTT Exploration and Production PCL (PTTEP) and Credit Suisse First Boston,” he added.
As it stands right now, PTTEP holds a 34% stake in Medco through holding firm New Links Energy Resources Ltd. Credit Suisse has a 20% stake in New Links and the Panigoro family of Indonesia hold the balance. Medco recently mounted a successful takeover of Australian-listed Novus Petroleum Ltd.
