Energi Mega loses Mozambique asset

By Thomas Sembiring

IDX-listed upstream company PT Energi Mega Persada Tbk (EMP) has lost its upstream asset in Mozambique after the government there did not extend the Buzi block contract when it expired in the middle of this year.

Head of Investor Relations at EMP, Herwin Hidayat said on Wednesday that as a result, the company had to make a one-time impairment lost worth US$185 million.

?The Buzi block contract was not extended by the Mozambique government,? he said.

Energi Mega owned 75 percent participating interest in the Buzi block. The company initially planned to sell the interest in the block to other investor once the Mozambique government extends the contract.

Editing by Reiner Simanjuntak