Mirach Energy signs MoU to bring new investor to Papua blocks

Singapore Exchange-listed firm Mirach Energy announced on Wednesday that its two associated companies, PT Kamundan Energy (PTK) and PT Petroenergy Utama Wiriagar (PTW), have jointly signed an MOU with Vitar International Holdings Limited, a company incorporated in the Cayman Islands and listed in Hong Kong

Under the MOU and subject to the terms of the final agreement, VITAR will join PTK and PTW as a new partner and participate in the exploration and production activities in PTK and PTW.

As conditions to participate in exploration and production activities in PTK and PTW, Vitar will pay US$3 million, and issue a bank guarantee of US$5.2 million to PT Pertamina EP.

Vitar will also provide all funding for the work commitment required by the Operations Cooperation (KSO) Agreements signed by PTK and PTW with Pertamina.

The MOU is non binding and the signing of the final agreement will be conditional upon due diligence to be conducted by Vitar, the Company said.

Mirach has interest in Wiriagar and Kamundan blocks which are operated under Operations Cooperation Agreement (KSO) with PT Pertamina EP.

Both blocks are located in West Papua, close to BP-operated Tangguh blocks. (alex)