MITI: Approval for acquisition of Benakat Oil delayed
Friday, July 22 2016 - 02:55 AM WIB
Bisnis Indonesia quoted MITI Director Diah Pertiwi Gandhi as saying the company will arrange a new schedule for the shareholders meeting.
As has been previously reported by this portal, MITI plans to launch a rights issue to raise proceeds to help finance the acquisition of a 23.44 percent shares in Benakat Oil worth Rp 71.73 billion.
MITI signed a conditional sale and purchase agreement on May 20 of this year with PT Pratama Media Abadi (PMA) and PT Benakat Oil for the acquisition by MITI of 23.44 percent of the issued and paid-up share capital of Benakat Oil and translates into an indirect holding of 21.79 percent of PT Benakat Barat Petroleum (BBP).
BBP is a limited liability company incorporated under the laws of Indonesia. Pursuant to an operations cooperation agreement (the Benakat Barat KSO) entered into between BBP and PT Pertamina EP on March 16, 2009, BBP holds an undivided 100 percent interest in the Benakat Barat KSO and has the rights and obligations to exploit, develop and explore for hydrocarbons in the Benakat Barat field in South Sumatra.
MITI has said that oil and gas business will become the company?s main sole of revenue as it has sold its granite concession on Bintan Island, a process that is also expected to be completed this year. The sale of the granite concession was also part of the agenda of the Thursday shareholders meeting,
MITI currently owns the Linda Sele oil and gas field, in West Papua, following the acquisition of 90 percent shares of Goldwater LS Pte Ltd from Interra Resources Ltd in 2014. Last year, sales volume from the concession stood at 6,669 barrels. Yoyong said that production from Linda Sele is expected to increase this year. (*)