Kondur will not tie up with Bumi Resource: Bakrie

The Bakrie business group denies a press report that its oil subsidiaries PT Kondur Petroleum and PT Bumi Resources, formerly known as PT Bumi Modern would to form a business alliance.

Lalu Mara Satriawangsa, the spokesman for the business group, said on Monday that Kondur did not have any plan to tie up with Bumi Resources. But he acknowledged that PT Bumi Resources, a part of the Bakrie group's investment arm PT Bakrie Capital Indonesia was considering taking over some of oil wells in the country.

"Bumi Resources are still being engaged in negotiations with several local oil firms about the possibility of acquiring their oil interests, but not with Kondur Petroleum," he was quoted by Bisnis Indonesia as saying on Tuesday.

According to Mara, besides considering acquiring several domestic oil wells which are ready for production, Bumi Resources was also still studying the possibility of forming a business alliance with other local oil companies outside the business group.

Bisnis Indonesia reported on Monday that Bumi Resources was still being engaged in negotiations to take over its affiliated Kondur Petroleum as part of its oil expansion plan in the country.

Bumi Resources, formerly known only a small property developer, took its new name after it successfully took over a massive oil concession in Yemen recently. The company said last week it had allocated US$16 million in cash to start exploration at the newly acquired oil blocks in Yemen.

Bumi Resources, a part of the Bakrie Group, recently issued rights shares worth Rp 9.3 trillion to take over Gallo Oil (Jersey) Ltd, which has massive oil interests in Yemen. (*)