Buzi EPCC oil and gas block – Energi Mega Persada in search of buyers for portion of Mozambican asset

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Buzi EPCC oil and gas block – Energi Mega Persada in search of buyers for portion of Mozambican asset

10:37 CAT | 23 Dec 2016

The Jakarta Post / Energi Mega Persada president director Imam Pria Agustino answers questions during the company's public expose in Jakarta on Wednesday

Bakrie Group’s oil and gas subsidiary Energi Mega Persada said that it was in the negotiation process with potential buyers to take over a portion of its ownership in Mozambique’s Buzi EPCC oil and gas block.

President director Imam Pria Agustino said the company would reduce the size of its participating interest ownership in the block from the current 75 percent to between 30 and 50 percent. The remaining 25 percent stake is currently held by local partner Empresa Nacional de Hidrocarbonetos (ENH).

“We are still negotiating with [potential] buyers,” Imam said on Wednesday at the firm’s public expose in Jakarta.

Earlier this year, Imam said there were three investment proposals submitted to the firm in response to its plan to sell some ownership parts in the block. The company is eyeing US$96.25 million from the sale.

Energy Mega acquired the block in October 2013 for $175 million. The block consisted of two fields that reportedly have 283 billion cubic feet of proven and probable gas reserves.

Moreover, the block also has 3.4 trillion cubic feet of gas prospective resources.

The oil and gas company is facing a declining production and struggling to restructure its debt. As of September, it booked a net loss of $67.37 million, slightly lower than the $69.14 million net loss made during the same period last year.

Source: The Jakarta Post