Bakrie trims Iran stake

Bakrie trims Iran stake

NICOSIA (Reuters): Canada's Bow Valley Energy Ltd, planning a buy-back contract to develop an Iranian oilfield, has been told by its Indonesian partner that it would no longer be able to finance the project as planned, the Middle East Economic Survey (MEES) reported on Monday.

MEES said that the Indonesian currency crisis had prompted Bakrie Minarak Petroleum to pare its financial commitment for the development of the 40,000 barrels per day (bpd) Balal offshore oil field in Iran.

"The Indonesian firm had been expected to put up all of the $152 million or so needed to support the capital costs of the master development plan," the newsletter said.

"While Bakrie is likely to lessen its obligations in respect of Balal considerably, negotiations are still underway to sort out the extent of this reduction," it added.

The newsletter said Bow Valley is in the process of identifying other firms which might be interested in joining the project on a joint-venture basis.