Federal sells land rig to new buyer

Alton International (S) Pte Ltd, a unit of Singapore-listed Federal International (2000) Ltd, has signed sales and purchase agreements to sell its land rig and its entire 65 percent stake in PT Geo Link Nusantara Pte Ltd (GLN) to Eka Taufik Syah Putra and PT Geo Link Nusantara (PTGLN).

Under the SPA, Putera will acuire the 65 percent interest in GLN, while PTGLN will acquire the land rig for for a total of US$50 million, Federal said in a statement on Thursday.

PTGLN is a strategic partner of GLN and chartered the land rig from the latter prior to the signing of the SPA. PTGLN was awarded an integrated project management contract for a drilling and exploration project in an oil and gas field block in West Jawa, the company said in September 2009

Meanwhile, Putera, an Indonesian citizen, is currently one of the shareholders and directors of PTGLN who in turn owns 20 percentof GLN and serves as its director.

The company said that the new SPA replaced the one signed in September with a certain individual which was terminated on Dec. 2, 2009 due to non payment of the proceeds. (denny)