Mitra Investindo seeks new business in oil, gas industry
Saturday, July 23 2016 - 03:21 AM WIB
IDX-listed PT Mitra Investindo Tbk (MITI) is looking for new business opportunities in the oil and gas industry to beome a new source of income after it sold its granite concession in Bintan Island, Riau Islands Province.
Diah Pertiwi Gandhi, President Director of MITI, said that the company would not rely on its existing upstream asset as the only source of income. She said that the company is mulling to enter upstream services business such as inspection or drilling.
?We don?t want oil and gas sales to be our only business. We have to create a new source of income to help push our financial performance,? she said, but did not provide further details.
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. Following the divestment of the granite concession, Linda Sele is currently MITI?s sole asset.
The company failed to get approval from shareholders over a planned rights issue to finance the acquisition of PT Benakat Oil during a Thursday shareholders meeting as the number of participants did not meet the required quorum.
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.
Editing by Reiner Simanjuntak