Bakrie's Energi Mega Eyes More Acquisitions With $350m War Chest

An Azerbaijan state flag flutters in the wind on an oil platform in the Caspian Sea, about 100 kilometers east of Baku, in this Jan. 22, 2013, file photo. (Reuters Photo/David Mdzinarishvili)

By : Agustinus Tetiro | on 9:30 PM October 08, 2014
Category : Business, Corporate News

An Azerbaijan state flag flutters in the wind on an oil platform in the Caspian Sea, about 100 kilometers east of Baku, in this Jan. 22, 2013, file photo. (Reuters Photo/David Mdzinarishvili) An Azerbaijan state flag flutters in the wind on an oil platform in the Caspian Sea, about 100 kilometers east of Baku, in this Jan. 22, 2013, file photo. (Reuters Photo/David Mdzinarishvili)

[This story was first published at 1:38 p.m. on Wednesday, Oct. 8, 2014]

Jakarta. Energi Mega Persada, an oil-and-gas firm controlled by the Bakrie family, has set aside $350 million to acquire oil and gas fields in Africa, Asia and the Middle East.

Bambang Istiadi, Energi Mega’s development chief, told Investor Daily that it is easier to find oil and gas blocks for acquisition overseas than in Indonesia.

“We’re ready if there’s a good opportunity,” Bambang said.

The company would raise the money from both internal and external sources, he said.

Energi Mega acquired a 75-percent stake in the Buzi block in Mozambique earlier this year for $175 million. The block has 283 billion cubic feet of proven and probable gas reserves, with production set to start in 2017.

Profit at the company fell 84.5 percent to $27.3 million in the period January to June this year compared with the same period last year, during which it sold one of its units.

The oil-and-gas firm sold a 10 percent stake of its Masela PSC block, located in West Timor, for $313 million to Inpex Masela, a unit of the Japanese oil-and-gas company; and to Shell Upstream Overseas Services, a unit of Royal Dutch Shell.

Energi Mega booked $413.4 million in net sales from its production output of approximately 13,000 barrels of oil per day and 223 million cubic feet of gas per day throughout the first six months period this year.

Shares of Energi Mega climbed 2 percent to settle at Rp 102 a piece on Wednesday, contrasting a decline of 1.5 percent on the broader index.

Energi Mega is one of Bakrie family’s companies listed at the  Indonesian bourse. Others include Bumi Resources, Bakrieland Development and cellular operator Bakrie Telecom.

Investor Daily

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