EMP sells stake at Kangean PSC for $360m
Thursday, March 1 2007 - 05:50 AM WIB
JSX-listed oil, gas firm PT.Energi Mega Persada (EMP) announced Thursday it had signed Heads of Agreement on Thursday with Japanese firms Mitsubishi Corporation and Japan petroleum Exploration Co.Ltd. to sell 50 percent stake at Kangean PSC, offshore East Java for US$360 million.
Under the deal, Mitsubishi and Japex will hold 25 percent shares each at PT.Energi Mega Pratama Inc. (EMPI), which has 100 percent indirect interest in Kangean. The remaining 50 percent stake at the block will be owned by EMP.
Final deal is expected to be signed early this month and must secure approval from EMP shareholders.
The company said $275 million of the proceed would be used to pay outstanding debts to Credit Suisse with the remaining balance would be used to strengthen working capital.
Kangean PSC is one of East Java?s major producers, supplying gas to fertilizer plant and power plant.(alex)