Bumi plans to double oil output after selling mines

PT Bumi Resources, which may complete the US$ 3.2 billion sale of Indonesia?s largest coal mines Tuesday, said it will maintain revenue by doubling output from the oil and gas company it has agreed to buy. The Jakarta Post reported on Tuesday.

Bumi plans to double production at PT Energi Mega Persada, the country? second-largest publicly traded oil company, to 66,000 barrel a day, Finance Director Eddie Soebari said in an interview on July 6. Oil and gas production will provide most of Bumi?s revenue until it completes a plant that converts coal to gas into liquid fuel, he said.

?Energi Mega will maintain our revenue stream, so we?re not going to lose any revenue having sold out KPC and Arutmin,? Eddie said. ?We?ll try to double the oil capacity of Energi Mega, and gas, that?s one of their biggest potential areas right now.?

Bumi plans to invest as much as $2 billion in a so-called coal liquefaction plant in South Sumatra.

Bumi is in talks with potential partners from the United States, Europe, and China to build the coal liquefaction plant in South Sumatra, near the coal concession of its unit PT Pendopo Energi Nusantara, Eddie said. He declined to name the companies involved.

Bumi and Energi Mega are both affiliates of the Bakrie Group, controlled by the family of the Coordinating Minister for People?s Welfare Aburizal Bakrie (*)