Gasindo to resume oil, gas exploration in E. Kalimantan

Upstream company Gasindo Makmur Energy Ltd (formerly known as Patina Group) is set to resume oil and gas exploration activities at the Bangkudulis working area in East Kalimantan after the Central Jakarta District Court approved the company?s debt restructure agreement with creditors, Bisnis Indonesia reported on Tuesday.

The paper quoted Gasindo lawyer Hardiansyah as saying that under the agreement, the company will use revenue obtained from the upstream project to repay debts to its creditors, starting 2022

Gasindo is teaming up with PT Pertamina EP in the development of the Bangkudulis oil and gas working area via a joint operating agreement (or KSO).

Hardiansyah said that the company will pay only 15-22 percent of debt each owed to its 77 creditors. The company owes a total of Rp 377.57 billion debts to the creditors. The payment will be made via a combination of cash and shares in the company. He said that most of the company?s creditors opted for their debts to be converted into shares in the company. (*)