RAE, EKNI sign CBM joint operation in Kutai
Tuesday, July 30 2013 - 01:59 PM WIB
PT Resource Alam Energi (RAE), a subsidiary of IDX-listed PT Resource Alam Indonesia, has signed a joint operating agreement (JOA) with PT Ephindo Kutai North Inc (EKNI), to operate the coal bed methane (CBM) project in Kutai II Block, East Kalimantan.
Under the deal agreement, which was signed on Friday (26th July 2013), RAE has interest in the project at 8 percent, while EKNI at 92 percent, RAE said in a press statement on Tuesday.
The amount of investment paid by each of them will be determined later according to their respective interest under the system of cost recovery.
Separately, PT Insani Baraperkasa (IBP), a subsidiary of PT Resource Alam Indonesia, has also signed an agreement on net income with EKNI, which has acquired a portion of interest of developing CBM in the coal concession owned by IBP.
The company stated that the signing of the two agreements is in line with overall strategic plan of the company to increase added value in the long term.
Editing by Benget Besalicto ST