July 12, 2022
The asset designated PT Medco Energi Internasional’s (MedcoEnergi) $450 million loan facility as Transition Energy Deal of the Year – Indonesia at its 2022 Triple A Sustainable Infrastructure Awards. Gibson Dunn advised MedcoEnergi Group on the term loan facility in its $1.35 billion acquisition of ConocoPhillips Indonesia Holding Ltd. facility were traded to align with positions in Medco’s existing high yield bonds instead of those typically seen in leveraged buyouts governed by English law.
This agreement represents a key step in the evolution of the MedcoEnergi group towards a predominance of gas, in line with its strategy to fight against climate change of developing gas as a transition energy source (low carbon) and to s moving away from more carbon-intensive raw materials. The target group for the acquisition is the operator (which has a 54% working interest) of Corridor PSC, which owns seven producing gas fields located onshore in South Sumatra, Indonesia, and a 35% interest in the Transasia Pipeline Company. The majority of the production is gas sold under long-term contracts to quality off-takers in Indonesia and Singapore, and represents a very important key step in these countries’ evolution towards gas as part of their fight against climate change.
Gibson Dunn’s team was led by his Singaporean partner Jamie Thomas and assisted by Singaporean lawyer U-Shaun Lim and Singaporean lawyer John Cheah. The awards were presented on July 7, 2022.