Medco's president commissioner Hilmi Panigoro said the acquisition could not be materialized due to some "administrative" problems.
"During the negotiation, we discussed many factors, including price and administrative issue.
The price was an easy issue, but those related to the administration issue were a problem," he
is a publicly listed company, while Pertamina
is a state-owned company.
There were some administrative requirements that would have had to be fulfilled by Pertamina
before concluding the acquisition, such as government approval.
"We cannot reach an agreement on these administrative terms and conditions," Hilmi
He said Medco and Pertamina would continue their cooperation in the operation of oil and gas fields despite the cancellation of the acquisition plan.
Pertamina and Medco
, for example, would team up to develop the Donggi Senoro LNG
plant in Central Sulawesi, he