Elnusa eyes oil block owned by Tradewinds

Wed, 09/03/2008 10:42 AM  |  Business

Publicly-listed upstream oil and gas services company PT Elnusa plans to purchase two companies owned by U.S.-based Tradewinds Oil and Gas International Ltd. in a bid to control an oil block.

In its statement to the Indonesia Stock Exchange on Tuesday, Elnusa said its subsidiary, PT Elnusa Patra Ritel, would buy out PT Radiant Ramok Senabing and Gulfstream Resources Ramok Senabing Ltd., which operate the Ramok Senabing TAC Block in Prabumulih, South Sumatra.

With the acquisitions, Elnusa will control 100 percent of the block's working interest and will become block operator.

Elnusa vice president and corporate secretary Heru Samodra said the company would significantly increase production to ensure sustainability.

"Thus far, our company is only involved in providing upstream services based on contractual business. With this acquisition, our company can receive a continuous income."

"We have yet to disclose the amount of the transaction. However, we will try to secure the funds from our internal cash flow. We will seek financing from banks if we lack the funds," Heru said.

The acquisition is scheduled to be completed next month.

The company recorded a net profit of Rp 85.37 billion (US$9.2 million) in the first half of the year from a consolidated revenue of Rp 1.7 trillion.

This year, the company is targeting to post Rp 199.8 billion in profit, compared to Rp 110.3 billion last year.

The company is targeting a revenue of Rp 2.19 trillion this year, up from Rp 2.11 trillion last year.

The company is 41.1 percent owned by state oil and gas company PT Pertamina. --JP/ewd

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