Anzoil to sell S. Sumatra LPG stake

Australian listed oil and gas firm Anzoil said Monday it had agreed to sell 80 percent of its stake in Lembak liquefied petroleum gas (LPG) project in South Sumatra to Pacific Energy 2000 Pty Ltd (PETT) in a bid to lower business risk in South East Asia.

PETT is a company run by Anzoil former directors.

According to Anzoil, this transaction is subject to shareholder approval and the subject resolution to shareholders will be supported by an independent opinion of the proposed transaction.

Starting October 2001, PETT will assume 80 percent of the costs associated with the Lembak LPG projects.

According to the company's earlier announcement, the Lembak LPG project is expected to become on stream in the second half of 2002 with production of 120-130 tons of LPG and 250 barrels of condensate per day for export to the growing markets of South East Asia.

The operations are expected to generate annual turnover in excess of US$13 million annually during 15 years of operations. (alex)