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Summary
PT Medco Energi Internasional Tbk (MEDC) is on the lookout for more merger and acquisition (M&A) opportunities in Southeast Asia after successfully buying ConocoPhillips Indonesian assets in a US$1.355 billion deal struck last year. “Some large opportunities might open up, but there are not that many compared to a few years back; only a few may come to market in the near future,” Roberto Lorato, Chief Executive of Medco Energi, told Energy Voice.
The focus of any expansion will be in Southeast Asia, particularly Indonesia, Malaysia, and Brunei, where material opportunities exist. Aside from materiality, the key criteria for any M&A deals include operatorship, Medco Energi likes to be in control, especially in relation to determining its ESG strategy; and natural gas assets are preferred to oil. The company also has less appetite for frontier exploration unless natural gas.
Crucially, environmental, social, and governance (ESG) factors will be critical in any material investment decisions – project investment or M&A. “ESG and the climate emergency will not go away. Medco Energi has progressively transitioned from a pure exploration and production company to an energy company,” Lorato said.
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