Monday, September 25, 2006

Lapindo disaster spin-off: Accountability!

Shareholders of PT Energi Mega Persada (EMP) Tbk will assemble next month to vote for spin-off of Lapindo Brantas Inc. Stock market authorities, surprisingly, had given their blessings arguing of no public (shareholders & the victims) losses from the spin-off. Bakrie Oil & Gas, the would-be name of Lyte Ltd which takeover Lapindo Brantas with US$2 only, will assume the accountability of the mudflow disaster in Sidoarjo, East Java. What's going on? Why US$2 only?

Under the plan, EMP would sell its shares in Kalila Energy Ltd and Pan Asia Enterprises Ltd, both control 100% shares of Lapindo Brantas Inc, to Lyte Ltd at US$2. Kalila and Pan have combined sales revenue of Rp221 billion (US$25 million) last year. Given so, EMP has the option to buyback Kalila and EMP. Nice Hah!
Lyte is a company established in January 2006 in Jersey Island. The owners? Fiduciary Management Ltd & Fiduciary Ltd, both controlled by Bakrie Group.
Unfortunately, no risk factors mentioned in EMP's announcement. Is that simple? Well, with US$2, it looks so easy. EMP shareholders may also have been relaxed. But can we really believe that the so-called Bakrie Oil & Gas will be accountable on Lapindo disaster that may cost up to hundreds of million USD? Can EMP shareholders and management simply walk away from the disaster, financially & legally?

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3 Comments:

Anonymous rt said...

I wish I took finance back in Uni. I'd have be as rich and as "smart" as Bakrie's minions.

On another note, if I pray (this is not a good intention, I know) that another disaster will happen (hopefully that doesn't cause any public damage or loss of life) on Bakrie's other oil plant/any investment that would cause them billions (not millions) of dollar and finally they wouldn't be able to recover from it, is it ok?

please..please...can I??

September 25, 2006 6:59 AM  
Anonymous Anonymous said...

Why US$2? Is it rhetoric or what? Of course sell it very low to the family and if the mud flow case is settled later, the same company will buy it again later at an exorbitant price, and as usual at the expense of the minority shareholders.

September 25, 2006 8:56 AM  
Anonymous Anonymous said...

Lapindo has been always very tight on giving its subsurface/seismic data
for mudflow crisis management. Those data should be the controlling
reference before any surface operations, e.g. sidetrack drilling, relief
well could be done effectively. Otherwise, any drilling is essentially a
blind effort and destined to failures. Many experts have turned down any
request to help because of this situation.

It is said that Lapindo may have big oil and gas potential underneath that
they do not want people to know. In this regard, Lapindo cheap spin off
could be just another Bakrie strategy to come back later on to big oil
reserves with very low price. Forget the right compensation for the
victims..it is big boys game for sure..

September 25, 2006 4:33 PM  

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