Medco to acquire oil blocks

Medco to acquire oil blocks

JAKARTA: Indonesia's oil producer PT Medco Energi
International said Thursday it will acquire by October stakes in
two oil blocks in South Sumatra and Irian Jaya provinces for
US$11 million.

"We will buy a 60 percent stake in a company that operates an
oil block in South Sumatra for $6 million," Medco's Chief
Executive Hilmi Panigoro said.

He said Medco will also buy an 80 percent stake in another
company that operates an oil block in Irian Jaya province for $5
million.

He didn't disclose the names of the companies, but said the
company that operates the oil block in South Sumatra is a British
company, while the one in Irian Jaya is an American company.

He said Medco will use proceeds from the $100 million
Eurobonds issued earlier this year and cash to finance the
acquisition.

"(The) proceeds will also enable us to acquire and finance
(other) acquisitions," he added.

Other acquisition options include acquiring interests in
production blocks, new and existing oil and gas assets, and
equity stakes, Panigoro said. -- Dow Jones

;Agencies;
ANPAf..r..
CorporateBrief-AOL
AOL reveals suspicious accounting
JP/16/Brief

AOL reveals suspicious accounting

NEW YORK: Media titan AOL Time Warner said Wednesday it had
found US$49 millions in dodgy accounting at its advertising and
commerce division and it was investigating other deals.

AOL said it discovered the transactions in the past 10 days
and disclosed them to market regulators in documents swearing to
the accuracy of its accounts.

The group said it had identified three deals involving the
unit in which it suspected income to AOL may have been wrongly
recognized as advertising and commerce revenues.

The three suspect deals, spread over a year and a half,
amounted to about $49 million.

"While these amounts are an insignificant portion of the
company's revenue during these reporting periods, the company
stated that it is further reviewing these, as well as other,
transactions involving the AOL division relating to advertising
and commerce revenues," AOL said in a statement.

The group said it was conducting an internal review to check
whether the accounting was incorrect and whether action should be
taken over its reported financial results. -- AFP

;Agencies;
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CorporateBrief-News-Corp
News Corp. loses US$1.74 billion
JP/16/Brief

News Corp. loses US$1.74 billion

NEW YORK: Rupert Murdoch's media empire News Corp. reported
Wednesday a US$1.74-billion quarterly loss after a calamitous
investment in Gemstar-TV Guide International.

The result for the April-June quarter represented a dramatic
deterioration from losses of $265 million incurred a year
earlier.

But the Adelaide, Australia-based media company said its
underlying business was strengthening.

"We are in an excellent position for continued profit
improvement as we advance into our new year with a lower cost
structure and signs of an improving marketplace," Murdoch told
industry analysts here.

News Corp. said its sales -- driven by television, cable and
newspaper divisions -- leapt $387 million, or 11.24 percent, to
$3.83 billion.

Operating profit, which discounts the heavy writedowns, taxes
and interest payments, rose 25.21 percent to $452 million. -- AFP

;Agencies;
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CorporateBrief-Fujitsu
Fujitsu to cut 2,100 jobs
JP/16/Brief

Fujitsu to cut 2,100 jobs

TOKYO: Japanese computer titan Fujitsu Ltd. said Thursday it
would cut 2,100 jobs, or 1,2 percent of its workforce, at four
factories through a generous voluntary retirement scheme to stem
billowing losses.

Employees who opt to leave the troubled company could receive
up to 40 months in additional salary.

"The adjustment in our human resources is part of our strategy
to deal with the slumped market conditions," said a Fujitsu
spokeswoman, who declined to be named.

The retirement program attracted 2,100 applicants between the
end of July through to last week, she said. It was offered to
staff at three Fujitsu plants that make printed circuit boards
and one which produces electronics parts.

It wasn't clear how much the restructuring would cost, but
Fujitsu would give workers eight to 40 months severance pay in
addition to normal retirement benefits, spokespeople said. -- AFP

2002.-- AFP