Sugih has no plan to farm out its interest in Lemang block

By Febry Silaban

IDX-listed PT Sugih Energy Tbk said it has no plan to farm out its interest in the Lemang block in Jambi until now.

?We are still focused on the production of Lemang block within four months ahead because we have received approval for its POD (plan of development),? President Director Andhika Anindyaguna Hermanto told Petromindo.com.

He added that his firm has received bids from prospective investors, but he declined to name the bidders, the size of the stake they want, nor the bidding price.

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

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

Ramba has received the government?s approval for the first 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.

Editing by Johannes Simbolon