Bumi struggles to pull out from Yemen
Friday, February 24 2017 - 02:49 AM WIB
Petromindo|Thomas
IDX-listed coal mining giant PT Bumi Resources Tbk has decided to relinquish its oil and gas asset in Yemen amid lingering political turmoil in that country.
Bumi President Director Ari S. Hudaya said on Thursday that the company has been unable to exploit the oil and gas asset in Yemen due to the political conflict in that country, prompting the decision to divest its ownership in the asset.
He said, however, the company has been facing difficulties in divesting the asset as there is no longer functioning government in Yemen following coup made by the Houthi rebel group in 2015.
?Where should we send the letter (to relinquish the asset)? In the past, there was ministry of mines, but now it?s no longer existent,? Ari said.
Bumi owns the Yemen asset through its 100 percent-owned subsidiary Gallo Oil (Jersey) Ltd, which was acquired in 1999. Since then Gallo has yet to make profit contribution to Bumi.
Ari said that Bumi has spent about US$362.82 million for exploration activities in Yemen. ?We entered (Yemen) in 1999. Drilling program started in 2002. We fond gas reserves of around 10 tcf, but how can we develop it amid the current war?? he said.
Editing by Reiner Simanjuntak