Kerr-McGee completes sale of Indonesia oil and gas properties

By OGJ editors

HOUSTON, June 18 -- Kerr-McGee Corp., Oklahoma City, last week completed the sale of its KM Indonesia Ltd. subsidiary to Petronas Carigali Overseas Sdn. Bhd, a subsidiary of Petroliam Nasional Bhd (Petronas) for $170 million.

Proceeds will be used to reduce debt, officials said. "This transaction is part of our long-term strategic plan to rationalize noncore assets and focus on growth in our core areas," said Luke R. Corbett, Kerr-McGee's chairman and CEO. "We will continue to review our asset portfolio to maximize shareholder value."

Included in that sale was the company's 30% nonoperating interest in the Jabung block. Jabung field in Jambi Province is one of three production areas from which PT Peruhsahaan Gas Negara, Indonesia's state gas distributor, plans to ship gas to Singapore when it finishes a pipeline in 2003.