Jakarta. Indonesian energy firm Medco Energi Internasional (IDX: MEDC) completed a $425 million ($7 trillion) acquisition of Spanish company Repsol’s indirect 24 percent stake in Indonesia’s Corridor gas block, lifting its ownership to 70 percent and tightening its grip on one of the country’s largest producing assets. State-owned Pertamina Hulu Energi holds the remaining 30 percent.

The deal marks a significant portfolio expansion for Indonesia’s largest listed energy company and positions it for stronger cash flow in the coming years, Medco Director Amri Siahaan said Wednesday during a public expose.

“This acquisition fits squarely within Medco’s investment criteria,” Amri said. “As operator of the Corridor block, increasing our ownership to 70 percent gives us greater control over asset management.”

Medco expects the additional stake to boost earnings before interest, taxes, depreciation, and amortization by about $145 million in 2026, assuming mid-cycle oil prices. Corridor’s gas output is underpinned by seven long-term sales contracts to domestic buyers and Singapore, providing stable revenue visibility.

The company also projects the acquisition will add roughly 25,000 barrels of oil equivalent per day to its production, helping Medco stay on track to hit its 2025 output target of 155,000 to 160,000 barrels of oil equivalent per day.

The Corridor block in South Sumatra is one of Indonesia’s largest gas-producing areas, spanning seven active gas fields and one oil field. Its production is critical for domestic supply and exports to Singapore under long-term agreements.

Amri said the deal not only strengthens Medco’s profitability in the near term but also supports Indonesia’s broader energy transition agenda. “Natural gas is a key transition fuel. Securing assets like Corridor allows Medco to sustain national development while maintaining strong cash flows,” he said.

Beyond oil and gas, Medco is expanding its renewable portfolio with a target of 4,300 GWh of power generation by 2025, focusing on geothermal, solar, and gas-fired transitional projects.

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