Interra Resources (SGX:5GI) has agreed to sell its entire stake in its Myanmar petroleum assets to Sinopetro Holdings Limited for a combined $7.8 million, according to a Monday filing with the Singapore Exchange.
Under the conditional deal, Interra's wholly owned subsidiary, Goldwater Company, will sell its 100% equity stake, consisting of one share, in Goldwater Indonesia Inc. (GII).
GII holds a 60% participating interest in two onshore improved petroleum recovery contracts in Myanmar, as well as a 60% stake in operator Goldpetrol Joint Operating Company.
The total transaction value comprises $5.75 million in cash from the buyer, plus a $2.0 million remittance from Goldpetrol Joint Operating Company to an Interra subsidiary.
Interra said the disposal follows prolonged political instability in Myanmar, which has created an unfavorable business environment. Moving forward, the oil and gas company plans to focus on diversifying into renewable energy projects in Indonesia and Thailand.