Bloomberg News

Sugih Agrees to Buy 49% Stake in Lemang Oil Block

December 15, 2011

(Corrects attribution in the final two sentences.)

Dec. 15 (Bloomberg) -- PT Sugih Energy agreed to buy a 49 percent stake in the Lemang oil block in Jambi province in Sumatra through a $230 million acquisition of Eastwin Global Investment Ltd., Sugih President Director Fachmi Zarkasi said in Jakarta today.

Sugih plans to raise 3 trillion rupiah from a rights offer to fund the purchase, Zarkasi said. The company expects to complete the rights offer in April, he said. Lemang block is expected to start producing oil next year with a peak output of 20,000 barrels a day to be achieved in three years, Zarkasi said. Ramba Energy Ltd. owns 55.21 percent stake in Sugih as of Oct. 31, according to data compiled by Bloomberg.

Ramba owns the other 51 percent in Lemang through PT Hexindo Gemilang Jaya, according a press release distributed at the briefing.

--Editor: Greg Ahlstrand

To contact the reporter on this story: Fitri Wulandari in Jakarta at fwulandari@bloomberg.net

To contact the editor responsible for this story: Berni Moestafa at bmoestafa@bloomberg.net


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