Spain’s Repsol has agreed to sell for $425 million its 24% interest in the mature Corridor production sharing contract onshore Sumatra, Indonesia, to the asset’s operator Medco Energi.
The Corridor PSC onshore South Sumatra has seven producing gas fields including Suban, Sumpal and Gelam, and one producing oilfield, with gas sold under long-term contracts to high-quality buyers in Indonesia and Singapore.
Corridor is the third-largest gas producer in Indonesia, with gross output in 2024 averaging 126,000 barrels of oil equivalent per day, comprising 676.9 million cubic feet per day of gas and 4700 barrels per day of oil and condensate.
Medco noted that the PSC is currently executing various facility optimisation and programmes to protect the base production and unlock additional reserves. Through Transasia Pipeline Company, it has a minority interest in Transportasi Gas Indonesia, owner and operator of the gas pipeline network that supplies customers in Central Sumatra, Batam and Singapore.
Medco is progressing carbon capture and storage (CCS) studies at the Gelam field, which has suitable reservoirs for carbon dioxide storage.
The transaction, the consideration for which is subject to customary adjustments, is expected to complete in the third quarter of 2025. The deal will increase Indonesian operator Medco’s interest in the Corridor block to 70% with the remaining 30% interest held by national upstream player Pertamina Hulu Energi.
Medco’s president director, Hilmi Panigoro, said: “This acquisition supports our strategy of owning and developing high-quality, cash-generative assets and reaffirms our commitment to national development where natural gas is a vital bridge to a lower-carbon future.”
The transaction will leave Repsol with just one Southeast Asian upstream asset — the Sakakemang PSC onshore Sumatra, Indonesia, where it is developing the Kali Berau Dalam field.
The Spanish operator in recent years has streamlined its global E&P portfolio, with regional deals including the 2022 divestment of its Malaysian and Vietnamese upstream portfolio — including producing assets — to Hibiscus Petroleum for $212.5 million.
The following year, Repsol moved to relinquish its Andaman III PSC offshore Aceh, Indonesia after it and partner Petronas failed to deliver with the high-impact Rencong wildcat.
Medco in late 2021 acquired its initial 46% operated interest in the Corridor block from US major ConocoPhillips. Subsequently, the PSC was renewed until 2043 under Indonesia’s cost recovery scheme, replacing the previous gross split model.
