Energi Mega spins off Lapindo

JSX-listed oil and gas firm PT. Energi Mega Persada announced on Wednesday that it would sell its stake at troubled Lapindo Brantas to a company affiliated with Bakrie Group.

The company said it would divest its stake in Kalila Energy Limited and Pan Asia Enterprise Limited, which together own 99.99 percent of Lapindo to Lyte Limited, a subsidiary of Bakrie Group Company. Lapindo is the operator and 50 percent interest holder of Brantas PSC in East Java, which exploration well Banjar Panji-1 flowed hot mud that has inundated several villages in the crowded Sidoarjo Regency,

The company said the sale would allow operational and financial resources to be refocused on other blocks. ?The sale will prevent the overhanging negative implication of the Banjar Panji-1 incident from clouding the attractiveness of the rest of Energi?s portfolio,? the company said.

The divestment transaction is subject to approval from independent shareholders. (alex)