Inpex has decided to sell its Indonesian subsidiary, Inpex Natuna Ltd., which holds a 35% participating interest in the South Natuna Sea Block B in Indonesia, to PT Medco Daya Sentosa, a subsidiary of PT Medco Energi Internasional Tbk.
Following its acquisition of a participating interest in the block in 1977, the Japanese oil major began producing crude oil in 1979 and natural gas in 2001.
Thereafter, crude oil, natural gas, and liquid petroleum gas development and production activities took place at multiple oil and gas fields in the block.
After almost 40 years since the start of oil production, the contribution of Inpex Natuna in terms of income and cash flow is expected to become relatively limited.
Hence, with a view to optimizing the group’s global asset portfolio, Inpex said it decided to sell all its shares in Inpex Natuana to PT Medco, a listed Indonesian energy company.
In terms of the impact on the company’s consolidated financial forecasts for the year ending 31 March 2017, Inpex expects an impact to the net income attributable to owners of parent of around 13.5 billion yen mainly as a result of reporting approximately 16.0 billion yen as non-operating expenses, it said.