Energi Mega Persada prepares three options to repay debts

PT Energi Mega Persada (ENGR), part of Bakrie Group, is preparing three financial options to repay the company?s debts worth about US$200 million to Credit Swiss, the company?s spokesman has said.

Herwin Hidayat, the investors relations manager, said in Jakarta Monday that ENGR?s debts to Credit Swiss would actually mature in 2013. ?But we want to speed up the payment to lower costs of funds,? he said, adding that the interest rate charged by Credit Swiss for its debts to ENGR had been too high in the current debt market.

For the debt repayment, the publicly listed oil and gas company was currently preparing three options, including the issuance of global bonds, the issuance of term loans and seeking bank loans, Herwin said. ?We are now still considering the best way to refinance the debts,? he added.

ENGR operates 9 oil and gas assets in Indonesia and two coal bed methane (CBM) blocks in Kalimantan. Their biggest source of oil comes from a block in the Malacca Straits, while blocks in Kangean supply the greatest amount of gas. (*)