As per the revised offer, Medco Energi proposes to acquire 100% of Ophir Energy for 55p per share in an all-cash deal. The boards of Medco Energi, Medco Global and Ophir Energy have reached agreement on the terms of the proposed acquisition.

Medco Energi director and CEO Roberto Lorato said: “Medco is pleased to have reached agreement to acquire Ophir and its portfolio of high quality oil and gas assets.

“The enhanced scale, diversification and growth opportunities of this Acquisition would create benefits for employees, partners and host countries, and further strengthens Medco’s position as a leading independent oil and gas player in Southeast Asia.”

The Indonesian group believes that the combined business will have a more balanced regional portfolio of producing and development assets with an improved ability to withstand macroeconomic volatility. The expanded portfolio is expected to have meaningful production and cash flows to enhance Medco’s credit position.

The transaction is planned to be executed by way of a court-sanctioned scheme of arrangement.

Ophir Energy chairman Bill Schrader said: “The transaction delivers upfront value in cash to Ophir Shareholders for the strategy that the Ophir Directors set out in September 2018.

The Ophir board believes that the Medco offer reflects the future prospects of Ophir’s high-quality assets, as reflected in the premium of 65.7% to the closing price of 33.20 pence per Ophir Share on 28 December 2018. Consequently, the Ophir board intends to recommend unanimously the transaction to Ophir Shareholders.”

Earlier this month, Ophir Energy turned down a revised offer of £340m issued by Medco Energi citing that it undervalued the company. The Indonesian energy company then issued an offer price of 48.5p per share to the UK-based oil and gas company, which has oil and gas assets in Asia and Africa.

Prior to that, Medco Energi made two bids, which went in vain. The first bid made in last October, saw the Indonesian group offer 58p per share for the 100% acquisition of Ophir Energy.

In December 2018, the Indonesian company came up with a revised offer at 53.8 per share with the price reduction caused by the then uncertainty surrounding the license extension of the Fortuna LNG asset and the decline in oil price from the time of the original offer.

Earlier this month, Ophir Energy could not succeed in getting the license extension of offshore Block R from the Equatorial Guinea Ministry of Mines and Hydrocarbons, where the company planned to develop the $2bn Fortuna FLNG project.