Medco sells interest in Brantas PSC for $100

JSX-listed energy firm PT.Medco Energi Internasional Tbk. announced on Wednesday it had sold its 32 percent working interest in troubled Brantas PSC to affirm called PT.Prakarsa Cipta Abadi for US$100.

?Decision to divest interest in Brantas was made because the company would like to allocate its resources to more attractive assets within its portfolio,? Medco said in a report to the Jakarta Stock Exchange.

Medco said the sale would make Prakarsa to take over responsibility on Medco?s share in Brantas PSC operations.

It is not immediately clear whether Medco?s move would get approval from capital market watchdog Bapepam as similar move by JSX-listed Energi Mega Persada to sell its 50 percent interest in the PSC was blocked by Bapepam.

Hot mudflow from Banjar Panji drilling in Brantas PSC has inundated large part of Sidoarjo township of East Java, causing hundreds of millions of dollars casualties that must be shouldered by Brantas partnership.

Medco said Prakarsa would be financially backed by Malaysian incorporated firm Minarak Labuan Co. Ltd., a Bakrie family-controlled firm which has oil and gas interest in Minarak block, Yemen.(alex)