PT MNC Energy Investments Tbk (IATA) has started the process of acquiring PT Suma Sarana (SS), a company from West Papua which is engaged in the oil and gas industry.
The acquisition plan is stated in the Sale and Purchase Binding Agreement (PPJB) which is then continued with the implementation today (18/4). This acquisition marks the entry of the MNC Group business group into the national oil and gas industry.
The issuer owned by Hary Tanoesoedibjo said the acquisition process was carried out in two stages. Firstthe company through PT Bhakti Migas Resources (BMR) bought 49 percent of SS shares.
Secondas many as 36 percent of the shares were acquired by BMR in the form of a binding sale and purchase agreement (PPJB) which will then be upgraded to a Sale and Purchase Deed (AJB) after obtaining government approval for a change in controlling shareholder.
“After the government approves the 36 percent acquisition, IATA through BMR will control 85 percent of SS shares,” the company wrote as quoted from the information disclosure on the Indonesia Stock Exchange (IDX).
IATA will control the exploration opportunity which is estimated to accommodate 30 trillion cubic feet (tfc) of natural gas in the Semai III Block in Papua.
In addition, the acquisition of SS allows the company to benefit from the oil and gas deposits found around the Tangguh, Asap, Merah, Pulau Seram, Andalan (Semai V) Gas Fields as well as the Abadi and NW Shelf Gas Fields.
Not only that, IATA will also invite international operators to partner in operating the Semai III Block.
“This is one of the company’s strategies in order to reduce capital expenditure and increase production efficiency,” he continued.
Previously, IATA officially changed its name to PT MNC Energy Investments Tbk to reflect changes in the company’s business activities and strengthen its position in the energy industry.
The company has also acquired PT Bhakti Coal Resources (BCR) which has 9 Mining Business Permits (IUP) in Musi Banyuasin and South Sumatra.
Organically, BCR will continue to focus on increasing production in existing IUPs and starting production in new IUPs. This is done as much as possible to take advantage of the momentum of coal prices which are still very high.
Furthermore, IATA will continue to look for opportunities to acquire new mines, both coal and other minerals such as gold and nickel, as well as assessing other prospects related to renewable energy.
“In addition, IATA will continue to evolve. The company plans to engage in contracting, logistics & transportation, trading, and so on,” he said.
(mrh/sfr)
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