Medco sees divestment of Lapindo as getting rid of responsibility

JSX-listed PT Medco Energi Internasional Tbk said PT Energi Mega Persada?s (EMP) plan to divest PT Lapindo?s Brantas Inc was an effort to get rid of the responsibility for settling the mudflow problem resulting from Lapindo?s exploration well in Porong, Sidoarjo, East Java, Koran Tempo reported Friday.

?This is a kind of move to be taken by EMP to get rid of demands for settling the Lapindo?s mudflow problem,? Medco Energi?s president director Hilmi Panigoro was quoted as saying by the daily in Jakarta on Thursday.

According to Hilmi, if EMP sells Lapindo, there must be the one (from Lapindo) who should be held responsible for tackling Lapindo?s mudflow problem. ?I have a positive thinking, they (the one from Lapindo) will be responsible (for settling Lapindo?s mudflow problem),? he said.

Earlier EMP announces its intention to divest its ownership in Kalila Energy Limited and Pan Asia Enterprise Limited (both companies are based in Hongkong) which together own 99.99% shares in Lapindo which in turn holds 50% working interest in Brantas PSC, to a company fully controlled by Bakrie Group.

Former boss Bakrie Group, Aburizal Bakrie, said that its move to transfer the ownership of Energi Mega Persada?s subsidiary did not necessarily mean that the company would run away from its responsibility in Porong. ?The one (company) that buy Lapindo should bear the costs for tackling lapindo?s mudflow problem,? he said.

Aburizal viewed the plan to transfer the ownership of Lapindo as a positive move, saying, ?if Lapindo is not sold to a company that is capable of bearing the costs (for settling the mudflow problem), the company (Lapindo) will face difficulty settling the mudflow problem.?

Meanwhile, a spokesman for EMP Herwin Hidayat, said that the plan to divest Lapindo was aimed to maintain the financial and operational performance of EMP. ?At the same time, Lapindo has a commitment to settle the mudflow problem,? he said.

According to Herwin, EMP is currently waiting for the outcome of the assessment on the planned divestment (of Lapindo) from an assessment team. ?After that, a step will be taken to select which companies under Bakrie Group that is most eligible to shoulder the responsibility for Lapindo?s mudflow problem,? he said.

?We have to select the most financially sound company so that it can really settle the mudflow problem,? he said.

He expressed the hope that the divestment plan would be completed by the end of this year. (*)