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Mitra Investindo sustains tepid oil production amid low prices
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Mitra Investindo finance director Yoyong gives a press statement after a shareholder meeting in Jakarta on Thursday. (thejakartapost.com/Anton Hermansyah)
M
ining, oil and gas company Mitra Investindo has decided to maintain a moderate-oil production level at 180 barrels per day, as world oil prices have stayed below US$50 per barrel.
The company currently operates an oil field in Sorong, West Papua, where 33 oil wells are producing, and two others are under maintenance. Several other wells are half-drilled and currently in 'on hold' status.
"If the oil price goes beyond $50 again, then we will increase our production up to 200 barrels per day," Mitra Investindo finance director Yoyong told thejakartapost.com on Thursday after a shareholders meeting in Jakarta.
The publicly listed company aims to focus on the oil and gas business this year as it has begun to sell its granite mining business in Bintan, Riau Island. As the license cannot be transferred to a third party, the company has to create a subsidiary for succeeding the license and selling it.
"We have got a buyer, Sanmas Mekar Abadi. They have transferred Rp 39 billion [$2.97 million] cash as a down payment, but we need shareholders’ approval for establishing the subsidiary company," he said.
Unfortunately, the company failed to meet quorum for the extraordinary general meeting to get shareholder approval. The company will make a second attempt to hold a general meeting with the same agenda three weeks from now. (ags)
