Indonesian Maurel & Prom Reschedules Debt

Indonesian-owned producer Maurel & Prom (M&P) has secured short-term relief on two debt repayments: a $600mn term loan with a syndicate of lenders; and a $200mn loan – one half of which has been drawn down – from controlling shareholder PT Pertamina, it said March 16. It said much of the repayment of the other $100mn had been pushed back to 2024, which is an extension.

Like all producers, M&P has been hit by this year's sharp fall in oil prices, which has limited its ability to service debt and invest in new production.

The relief means lower repayments this year and next, it said, "allowing M&P to maintain ample liquidity and better adapt debt repayments to cash flow generation and investment profile." Instead of paying off the term loan in four tranches of $150mn, it will pay half that amount both this year and next; but it will have to catch up by making much larger repayments in the two years following.

CEO Olivier de Langavant said that M&P would now be able to "deliver tangible progress on deleveraging while maintaining a robust cash balance in the current macroeconomic environment. Following the initial two year grace period, M&P is committed to reducing its debt, and the first quarterly instalment of the term loan to be repaid in the upcoming days marks a significant milestone."

He said the company was "strongly positioned to face the volatility of current market conditions thanks to its long-life assets and the flexibility offered by the operational control of its key assets.” M&P has production in Mnazi Bay, offshore Tanzania, whose gas is sold to state power producer.