Italy Focus for Sound after Indonesia Exit

Sound Oil's exit from Indonesia should be viewed as positive since it will allow management to dedicate time and resources to its Italian operations, according to analysts who follow the firm.

Sound announced Wednesday that it had agreed to sell its Indonesian subsidiary Mitra Energia Bangkanai to Salamander Energy – the operator of the Bankanai Production Sharing Contract in which Mitra held a five percent stake. The company will receive up to $7.1 million from Salamander in return for Mitra.

In a research note responding to the news analysts at London-based investment bank Westhouse Securities commented that the deal "marks a complete exit of Sound Oil from Indonesia and allows the company to fully focus itself on its Italian operations where first gas from the Rapagnano field is expected imminently".

Westhouse added that the strengthening of Sound's balance sheet from the Mitra deal also gives the firm the financial flexibility to address the appraisal drilling of its Nervesa and Strombone assets in Italy.

Sound also announced on Wednesday that Ilham Habibie, a non-executive director, has left the board of the company following its exit from Indonesia.



A former engineer, Jon is an award-winning editor who has covered the technology, engineering and energy sectors since the mid-1990s. Email Jon at


Post a Comment Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.

Related Companies

Our Privacy Pledge

More from this Author
Jon Mainwaring
Senior Editor, EMEA | Rigzone
 -  AGR Demands Speedy Loan Repayment from... (Nov 25)
 -  Autumn Statement: Thin on Detail about... (Nov 25)
 -  BG Group Buys a 35% Stake in Cyprus's ... (Nov 23)
 -  Global Downturn is Rare Opportunity fo... (Nov 19)
 -  Oil, Gas Industry Welcomes UK Governme... (Nov 18)

Most Popular Articles

From the Career Center
Jobs that may interest you
Chartering Manager
Expertise: Business Development|Logistics Management|Sales
Location: Texas, TX
Key Account Executive
Expertise: Business Development|Sales
Location: Texas, TX
Business Development Manager
Expertise: Business Development
Location: Houston, TX
search for more jobs

Brent Crude Oil : $46.12/BBL 0.63%
Light Crude Oil : $42.87/BBL 2.68%
Natural Gas : $2.2/MMBtu 0.45%
Updated in last 24 hours