EMP in no rush to sell E. Java oil, gas interest

IDX-listed oil, gas firm PT.Energi Mega Persada Tbk (EMP) said that sales process of its 50 percent stake at Kangean PSC offshore East java is still ongoing. The company, however, is still waiting for the ?right? price and is not in rush to conclude the sale.

Herwin W. Hidayat, EMP?s V.P. ? Capital Markets told Petromindo.Com on Monday that a number of suitors, including the block?s 50 percent partner Mitsubishi Corp and Japan Petroleum Exploration Co (Japex) had submitted their offers. ?However, all the offers are still below EMP?s expectation,? he said.

Herwin said EMP wanted to sell its stake in Kangean for the same price it sold its first 50 percent interest to Mitsubishi-Japex consortium.

EMP acquired 100 percent stake in the block from BP PLC in August 2004 for US$0.8 per BOE. The company later sold 50 percent interest in the block to Mitsubishi Corp and Japan Petroleum Exploration Co (Japex) in 2007 for $2.9 per BOE or US$360 million.

Kangen block is currently producing some 40MMCFD of gas from Pagerungan field. Other fields called Terang Sirasun Batur is expected to come onstream in 2010 with peak production of 300MMCFD.

EMP is controlled by Bakrie family. (denny)