Pearl moves to buy holder of Indonesian PSC

Eric Watkins
Senior Correspondent

LOS ANGELES, Oct. 18 -- Pearl Energy Ltd., Singapore, has signed a nonbinding memorandum of understanding to acquire 100% of issued share capital of Sebana Ltd. of the Virgin Islands from Indonesia's PT Petroland Energi.

Sebana's primary asset is a 90% working interest in the Bulu production-sharing contract (PSC) off East Java. Sebana is the operator.

Pearl will pay Petroland $1.5 million for Sebana and bear the cost of the bonus payment obligations to Indonesia required under the Bulu PSC, up to a maximum amount of $3 million.

PT Satria Energindo of Indonesia holds the other 10% of the PSC.

Contact Eric Watkins at [email protected].