EMP may sell stake at E. Java block

IDX-listed oil, gas company PT.Energi Mega Persada might sell its 50 percent interest in Kangean PSC offshore East Java to pay for the company?s debts, the company said on Thursday.

The company said in a release that it was currently considering offers from several institutions that have expressed interest to buy the company?s stake in the block.

The company did not give detail about the prospective buyers.

The company 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.

According to the company, the block has reserves of 239 million BOE.

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, who currently face financial crises due to dwindling share price. The family is now forced to sell shares of their business units to pay debts.(alex)