Bumi Resources to issue bonds to finance exploration works

PT Bumi Resources Tbk plans to issue bonds worth between US$10 million and US$12 million some time in March next year to finance oil exploration activities in the company's oil concessions in Yemen, Neraca daily reported on Saturday.

The company's finance director Eddie J. Soebari said in the company's public expose on Friday that the company was still waiting for the rating result from the Indonesian rating agency Pefindo to launch the bond offering.

He said that most of the proceeds from the bond offering would be used to finance the ongoing exploration activities in the company's oil concessions in Yemen. The company was currently conducting exploration works on the company's two oil fields -- R2 and 13 blocks in the country, with total investment of about $16 million.

Eddie said that a half of the financing for the oil exploration would come from Perta Coal Mining of Canada and the remaining 50 percent from its own fund.

The seismic exploration works covering 274.5 kilometer in the R2 block had been completed and the company would soon continue it with drilling activities in six oil wells in he oil block. The drilling activities would start later this month, Eddie said.

Bumi Resource has also signed an agreement with Korea National Oil Exploration Sambidoyong Ltd to jointly develop an oil field in West Java, with total investment of about4.4 million.

Eddie said that Bumi Resources will have a 40 percent interest in the project, the Korean company the other 50 percent and PT Putra Bhakti Mahkota the remaining 10 percent. (*)