Sugih Energy to sell stake in Lemang block

IDX-listed PT Sugih Energy Tbk plans to sell part of its stake in the Lemang oil and gas block in Jambi province to investors keen to expedite production, The Jakarta Globe reported Wednesday.

Sugih, which holds a 49 percent stake in the block, said it has received bids from prospective investors, according to President Director Andhika Anindyaguna Hermanto, who declined to name the bidders, the size of the stake, or the asking price.

?We want the Lemang block to start production soon, because we have secured government approval for our plan of development,? Andhika said, adding the company expected to start production within the next four months.

As reported by this portal last week, SGX-listed Ramba Energy, that owns the remaining 51 percent stake in the block, also said it would sell 25 percent of its stake for more than US$128 million. The company said had signed September 6 an MoU with an undisclosed strategic investor.

Both Ramba Energy and Sugih Energy are controlled by Indonesia?s Soeryadjaya family.

Ramba has received approval of the first Plan of Development (POD) for the Akatara Field, located in the Lemang block,, marking one of the final steps for the group in commencing oil and gas production from the Lemang block.

Ramba said last month that development of the Akatara Field and commercialization of the Lemang block will commence immediately with a view to commence production within six months at an initial rate of 1,635 barrels of oil per day (bopd) and 4.10 million standard cubic feet of natural gas per day (mmscfd) in late 2017. (*)