Novus invests more in RI

Novus invests more in RI

SYDNEY (Reuter); Novus Petroleum Ltd and Britain-based Clyde Petroleum PLC have signed an agreement with Marathon International Oil Co to raise their interest in the Kakap production sharing contract offshore Indonesia.

Novus said that if final negotiations were successful, its stake in Kakap would rise to 25.5 percent from 18.75 percent, while Clyde would buy a 31.25 percent stake and assume operatorship of the four oil fields covered by the contract from Marathon.

The transaction was subject to final terms being agreed between the parties, to due diligence and to a number of pre- conditions, including consent from Indonesian authorities.

Novus said it would fund its share of the acquisition out of existing working capital possibly including some of the company's undrawn debt facilities.

The existing participants in the Kakap production sharing contract are the operator Marathon Petroleum Indonesia which holds 37.5 percent, Novus with 18.75 percent, Discovery Petroleum NL 18.75 percent, LL&E Indonesia Ltd 15 percent and Pertamina with 10 percent.