Cayman Islands based Mandala Funding Ltd has agreed to a funding scheme worth $41 million for the oil and gas exploration company known as PT Sugih Energy, through its subsidiary Eastwin Global Investments Ltd.
The recently appointed finance director of Sugih Energy, Rahman Akil said that $31 million would be used to pay for the Lemang oil and gas development. Sugih Energy has a 34 percent stake in Lemang.
The cost of development which was promised was for $11 million in 2016 and $20 million in future cash for the coming year of 2017.
“We will use the other $8 million to refinance corporate’s debt and the remaining $2 million for corporate’s cash,” Rahman said.
The Lemang Block exploration was approved by the government of Indonesia in 2007. In November of last year the production phase began in the Akatara field, starting with 300 barrels of oil per day.
“We plan to drill five more wells in Akatara field, increasing the production to 1,500 bopd at the end of the year,” he said.
Mandala Funding, the lender of the financing, is a subsidiary of Singaporean Mandala Energy Ltd, which also has an interest in Lemang Block. Ownership of the block is shared by three companies: PT Sugih Energy Tbk through Eastwin Global Investments Ltd with 34 percent shares; Ramba Energy Ltd through PT Hexindo Gemilang Jaya with 35 percent shares; and Mandala Energy Ltd with 31 percent shares.