Energi Mega obtains $61.95m loan
Tuesday, October 22 2013 - 03:20 AM WIB
IDX-listed PT Energi Mega Persada Tbk (EMP) said it has obtained a US$61.95 million loan facility from PST Finance Ltd.
The company said in a filing to the exchange Monday that the loan facility was signed on October 17. According to the agreement, the loan will be used for general corporate purposes. The company?s entire ownership in subsidiary Energi Mega Pratama Inc is used as collateral of the lending facility.
Meanwhile, Bisnis Indonesia daily quoted EMP Investor Relations Head Herwin Hidayat as saying the loan was used to help finance the acquisition of the Buzi block in Mozambique, Africa.
On October 18, EMP announced that it had acquired oil & gas Exploration and Production Concession Contract (EPCC) for Buzi Block for $175 million.
Following the deal, EMP will own 75 percent participating interest in the block in a partnership with the Mozambique government who owns 25 percent through Empressa Nacional de Hidrocarbonetos (ENH). The block is projected to start production in 2017, the firm said in a statement. The firm funds the acquisition with the combination of the internal cash flow and loan financing.
Editing by Reiner Simanjuntak