Indonesia's ENRG to Divest Stake in Masela PSC

Energi Mega Persada (ENRG) has said that its subsidiary, EMP Energi Indonesia, has signed an agreement to divest its 10% stake in the Masela PSC block (Abadi LNG project) to INPEX Masela and Shell Upstream Overseas Services.

ENRG plans to use the proceed from the sale of asset to reduce its outstanding loan facilities, and consequently to lower the related interest expense, and to fund the working capital and capital expenditure requirements to increase production, the com[pany said.

Masela's Abadi gas field, located in the Arafura sea, Indonesia, is estimated to have 18.47 trillion cubic feet of proved and probable gas reserves as certified by DeGolyer & MacNaughton Consultant (Texas, USA).

Upon the transaction completion, ENRG will be left with some proved, probable, and possible reserves of 386 million barrels oil equivalent from its 11 oil, gas, and coal bed methane assets under its operation.