Federal granted option to acquire PetrosaNovomet
Friday, July 17 2015 - 02:59 AM WIB
SGX-listed Federal International (2000) Ltd, an integrated service provider and procurement specialist in the oil and gas, energy, utilities and infrastructure industries, said that a subsidiary of the group has signed an option agreement to acquire 51.3 percent shares in PT PetrosaNovomet Indonesia (PTPNI).
Federal said in a statement Tuesday that PTPNI was incorporated in january 2015 to supply, lease and operate specialized equipment using advanced proprietary technology that isable to increase the production and yield of onshore and offshore oil and gaswells in Indonesia. The specialized equipment is able to increase the output ofabandoned wells whereby production is no longer economically viable.
Recent trials using the equipment for two major oil companies yielded encouraging results and PTPNI is in active discussions to utilise and deploy the equipment for wells operated by these major oil companies and other oil companies.
In Indonesia, it is estimated that there are about 100,000 old and abandoned oil and gas wells that could benefit from using PTPNI?s equipment and technology. Besides Indonesia, the equipment could also bedeployed to other countries looking to enhance output from their oil and gas fields.
Commenting on the signing of the option, Koh Kian Kiong, Federal?s Executive Chairman and Chief Executive Officer said: ?This potential investment in PTPNI will allow the group to expand and strengthen its foothold in the upstream oil and gas sector under the group?s resources business segment and is likely to generate strong, stable and recurring future earnings for the group in the years to come once PTPNI builds up its ?order book for the equipment leasing contracts from the oil companies.?
Editing by Reiner Simanjuntak