ENRG Partners two Japan firms in Kangean Block

Jakarta (ANTARA News) - Indonesia`s private oil and gas firm PT Energi Mega Persada (ENRG) has signed a binding final agreement with Mitsubishi Corporation and Japan Petroleum Exploration Co. Ltd (Japex), an official said.

The move was made by issuing share of ENRG`s subsidiary namely Energi Mega Pratama Inc (EMPI) last March 6, ENRG director Faiz Shahab told the Jakarta Stock Exchange (BEJ) here Friday.

The issuance of the EMPI shares is a follow-up to Head of Agreement (HoA) which was signed last week, he said.

The binding final agreement specifies that Mitsubishi and Japex will control 50 percent working contract in Kangean PSC block cumulatively and finance parts of major projects at Kangean block.

"The transaction will generate fund totaling US$360 million in the form of the issuance of EMPI new shares. The transaction which involves the taking over of EMPI new shares issued by Mitsubishi and Japex will reduce ENRG ownership in EMPI to 50 percent," he said.

The transaction, Faiz said is a material one which must be approved by the majority of ENGR shareholders who will hold a shareholders` meeting next April.

The transaction reflects ENRG strategy which is focusing on vital growth, gas commercialization and operational superiority which can give a special value to shareholders, he said.

Late February Kangean PSC produced 39 MMscfd gas, 250 barrels of condensate and 3800 barrels of oil per day.

Other ENRG oil field in Sepanjang block produced 66,000 barrels of oils early this month.