Mitra hopes to conclude acquisition of Benakat Oil this quarter

IDX-listed PT Mitra Investindo Tbk hopes to be able to complete the planned acquisition of 23.4 percent shares in PT Benakat Oil in the second quarter of this year, Kontan reported on Monday.

The paper said the company is currently at the stage of completing the legal and administration process. Mitra said that the oil and gas business will become its major revenue contributor this year as it would divest its granite quarry business on Bintan Island. ?We?ll focus and concentrate on maximizing the existing oil assets,? said Tan Ronny Setiawan, Manager for Finance, Accounting and Tax at Mitra to the paper.

Mitra signed a conditional sale and purchase agreement on May 20 of last year with PT Pratama Media Abadi (PMA) and PT Benakat Oil (BO) for the acquisition by Mitra of 23.44 percent of the issued and paid-up share capital of BO 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.

Mitra 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. In 2015, sales volume from the concession stood at 6,669 barrels.

Mitra said it is optimistic about its business outlook this year on improving crude oil price, expected to hover at US$50-$60 per barrel. Last year, Mitra?s revenue declined by 24 percent to Rp 23.85 billion from sales of crude oil to PT Pertamina EP. (*)