PETALING JAYA: Analysts are generally bullish about Bumi Armada Bhd ’s latest venture with the Energy and Mineral Resources Ministry of Indonesia for the Akia production sharing contract (PSC) of oil and gas discoveries in the Tarakan Basin in north Kalimantan. “As such, we are maintaining our ‘buy’ call on the stock with sum-of-parts-derived target price of 69 sen a share,” HLIB Research said in a report on Bumi Armada. Bumi Armada said the Akia PSC covers an area of 8,394 sq km and contains the Aster and Tulip oil and gas discoveries. Under the contract, Bumi Armada would be the operator with a 51% participating interest whereas Pexco will hold the remaining 49% stake. MIDF Research was also positive on Bumi Armada’s prospects in this new project as the Tarakan Basin has a long history of exploration of nearly a century.

Source: The Star September 29, 2023 15:22 UTC