Mega Persada to invest $400 million to develop Kangean oil and gas block
Monday, December 20 2004 - 03:10 AM WIB
After having obtained an extension of its contract from the government, publicly-listed oil and gas company PT Energi Mega Persada is ready to invest up to US$400 million to develop the Kangean oil and gas block in East Java, the Investor Daily Indonesia newspaper reported in its Monday edition.
?We will use this amount to develop Terang Sirasun and Batur fields in the Kangean block,? Mega Persada?s director of finance Nazamudin Latief told the Investor Daily on Friday in Jakarta.
Mega Persada will get the money via loans from local banks and overseas sources.
Mega Persada?s contract was extended along with 45 other companies on December 12, 2004. It manages Kangean through its subsidiary EMP Kangean Limited.
Kangean block was previously operated by Beyond Petroleum (BP). Mega Persada bought Kangean block from BP for $165 million last June.(*)