Saga sells Jambi block

Saga sells Jambi block

OSLO (Dow Jones): Norwegian upstream oil company Saga Petroleum ASA said Thursday it has sold its stake in the Jambi Merang block in Indonesia to YPF Indonesia Ltd. and Amerada Hess Limited for NOK133 million (US$17.7 million).

The sale is subject to approval from Indonesian authorities and marks an end to Saga's operations in the country, as the company has said it wants to concentrate on other regions.

Saga had originally planned to sell its share in the Jambi Merang block to Cue Energy Resources N.L. in May last year for $27 million, but that company declined to go through with the transaction.

Saga as since sued Cue Energy for its losses including accrued investments and operating costs.

Founded in 1972, Saga Petroleum ASA is the largest privately- owned Norwegian offshore oil and gas group. Saga now concentrates exclusively on upstream oil and gas activities. Saga is operator of four fields and co-owner of 25 fields.