EMP sells Lapindo for $1 million

JSX-listed oil and gas company PT Energi Mega Persada (EMP) said it sold Kalila Energi Ltd. (KEL) and Pan Asia Enterprise Ltd. (PAN) a units that operates a Banjar Panji-1 exploration well for $1 million.

KEL and PAN own 100 percent of Lapindo Brantas Inc. (LBI).

Freehold Group Ltd. signed an agreement with EMP on Nov. 14 to buy Lapindo Brantas Inc, Thomas Soulsby, a director at EMP, said. Freehold, a unit of Singapore-based Alsace Pte Ltd., is owned by Jim Belcher.

Belcher owns Alsace as well as Ennar Group, a company that has conducted business with Bakrie Group as far back as the 1980s, Soulsby said as quoted by Bloomberg.

Bakrie, through unit Minarak Labuan Co. (L) Ltd., will guarantee the ``availability of funds'' for Lapindo to cover the costs in managing and stopping the mud flow, Jay Abdullah Alatas, a director of the unit, said in a Nov. 17 statement to the bourse. He didn't elaborate.

A previous attempt by EMP to divest its stakes in KEL and PAN to an affiliated company has yet to be approved by Bapepam. The decision to sell LBI to a third-party was made after long and careful deliberation and EMP believes that the sale is in the best interest of minority shareholders. (*)