Indonesia's Pertamina to own 28 pct stake in Medco Energi

JAKARTA Oct 17 (Reuters) - Indonesia's state oil firm Pertamina said it has agreed to buy a stake in Encore Energy Pte Ltd, which holds a majority share in Medco Energi (MEDC.JK), giving Pertamina a 28 percent stake in Medco.

No additional financial details were disclosed for the deal to buy a stake in Encore Energy Pte Ltd, which owns 50.7 percent of Medco Energi.

"This transaction process will make Pertamina the indirect holder of a 27.9 percent stake in Medco Energi," Pertamina said in a press release posted on its website.

The statement said that the deal would help Pertamina boost output and ensure cooperation between the two firms.

The move by Pertamina comes as crude oil production in the former OPEC member is steadily declining and is likely to miss the government's target this year.

(Reporting by Sunanda Creagh; Editing by Neil Chatterjee)