AWE: Completion of Bulu PSC sale delayed

By Romel S. Gurky

ASX-listed AWE Ltd said on Wednesday that completion of the sale of its 42.5 percent interest in the Bulu PSC, offshore Indonesia?s East Java Province has been delayed.

?The purchaser, a subsidiary of HyOil Pte Ltd, has continued to make progress payments and is negotiating an extension of time to complete,? the company said in a presentation material.

AWE announced in May of last year that it has entered into an agreement to sell its 42.5 percent interest in the Bulu PSC, which includes the undeveloped Lengo gas project, to a fully-owned subsidiary of HyOil Pte Ltd for cash consideration of up to A$27.5 million.

Elsewhere, the company said regarding the relinquishment of the Terumbu PSC (AWE 100%), offshore East Java, US$2.0 million remains to be paid by AWE (from a total of US$8m) in lieu of completing the work program and is expected to be completed by installment by the end of FY18.

AWE Ltd announced in April completion of the withdrawal from the Terumbu PSC.

Editing by Reiner Simanjuntak