EMP on hunt to offload Kangean

INDONESIAN independent Energi Mega Persada (EMP) is looking for buyers for its majority interest in the Kangean production sharing contract off Indonesia to reduce debt and focus on other upstream projects in the country, but it will not let the asset go at a bargain basement price.

19 December 2008 0:01 GMT Updated 19 December 2008 0:01 GMT

By AMANDA BATTERSBY, London

EMP holds 50% of the Kangean Energy Indonesia (KEI) consortium, which operates the block off East Java.

There is already production from the mature Kangean block that EMP bought several years ago from BP after the former operator was unable to agree an extension with the Indonesian authorities.

However, EMP has struggled since to arrange financing to develop the Terang-Sirasun-Batur fields and the situation has now been exacerbated by the global credit crunch and oil prices falling to a four-year low.

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EMP on hunt to offload Kangean