Sugih unit obtains $41.44m loan to help finance Lemang block
Monday, February 27 2017 - 05:40 AM WIB
IDX-listed PT Sugih Energy Tbk announced Monday that its subsidiary Eastwin Global Investments Ltd, which owns 34 percent participating interest in Lemang block, Jambi Province, has obtained loan facility worth US$41.44 million.
Sugih said in a statement that Eastwin signed the lending agreement on February 23 with Mandala Funding (Caymans) Ltd, a unit of oil and gas exploration and production company Mandala Energy Ltd, which is supported by Kohlberg Kravis Roberts (KKR & Co. L.P).
The company said that the loan will be used to repay outstanding debt and finance Eastwin?s portion of the required working capital for the development of the Lemang oil and gas block this year.
The Lemang block has been in production status since November of last year. This year, five drilling programs are planned in the Akatara field in the block in the hope that oil production at the end of 2017 could reach 1,500 bopd.
Mandala Energy holds a 35 percent interest in the Lemang PSC.
Editing by Reiner Simanjuntak