Energi Mega divests 10% stake in Masela

IDX-listed PT Energi Mega Persada reported on Tuesday that its subsidiary, PT EMP Energi Indonesia, has signed an agreement to divest its 10 percent stake in the gas-rich Masela PSC block (Abadi LNG project) to INPEX Masela Ltd and Shell Upstream Overseas Services (I) Limited.

This transaction is subject to the satisfaction of certain conditions, a statement by Energi Mega said.

It did not say the reason behind the divestment nor the value of the transaction. Before the transaction, INPEX held a 60 percent stake while Shell controlled 30 percent.

The company plans to use the proceed from the sale of asset to (1) reduce its outstanding loan facilities, and consequently to lower the related interest expense, and to (2) fund the working capital and capital expenditure requirements to increase production.

Masela?s Abadi gas field, located in the Arafura sea, is estimated to have 18.47 trillion cubic feet of proved and probable gas reserves as certified by DeGolyer & MacNaughton Consultant (Texas).

Energi Mega is an upstream oil and gas Company which produces around 48,500 barrels oil equivalent per day throughout the first quarter 2013.

Upon the transaction completion, Energi Mega be left with some proved, probable, and possible reserves of 386 million barrels oil equivalent from its 11 oil, gas, and coal bed methane assets under its operation.

Editing by Dadan Wijaksana