Mitsubishi may soon own 50 percent stake in Kangean PSC

Japanese giant firm Mitsubishi Corp. may soon control the 50 percent interest in the Kangean PSC, offshore East Java, which at present is wholly owned by PT Energi Mega Persada (EMP) Tbk, Bisnis Indonesia reported on Tuesday.

A source told Bisnis, Mitsubishi had in principal agreed to buy a 50 percent interest in the Kangean gas block from EMP. "The agreement will be concluded tonight (Tuesday night)," he said.

Mitsubishi has bid the 50 percent working interest in the Kangean gas block for US$360 million, outbidding two other main bidders including Marubeni Corp of Japan and Kuwait Foreign Petroleum Exploration Company (Kufpec), the source said.

EMP's vice president for capital market, Herwin Hidayat said that no agreement had so far been made on the sale of the company's interest in the block. But he acknowledged that a number of companies had expressed keen interest to buy the 50 percent interest in the block. (*)