JAKARTA (Yosefardi) – Oil and gas producer PT Medco Energi Internasional TBk (MEDC) will divest its ethanol business entity PT Medco Ethanol Lampung by early 2015, rescheduled from early June this year.
A local company has expressed its interest to buy Medco Ethanol. MEDC opts to focus on exploration and production, power and mining business.
Medco Ethanol Lampung is a joint venture (JV) of Medco’s unit, PT Medco Ethanol Indonesia, and PT Trada Bioenergy Indonesia. Medco holds 85% interest in JV, which had in 2006 established a plant which costed US$34.13 million.
MEDC also plans to refinance its US$120 million loan scheduled to mature next year. It allocates capital expenditure (capec) of US$1.1 billion for this year.