IEV, Rabana agree on reduction of gas supply
Wednesday, January 18 2017 - 01:15 AM WIB
Courtesy of IEV
SGX-listed IEV Holdings Limited announced Tuesday it has reached an agreement with PT Rabana Gasindo Makmur for a reduction of gas supply in the wake of the low oil price environment.
?This amendment to the Supply Agreement is expected to have taken effect from 2 January 2017,? IEV said in a statement, referring to the gas supply agreement the company made in 2015 with Rabana.
Pursuant to the 2015 Supply Agreement, IEV had secured a minimum 80 percent off-take of 2,700,000 MMBTU of feed gas over a period of 40 months commencing in the fourth quarter of 2015.
?However, given the continuous depression of the oil price, the mobile natural gas business has become increasingly challenging over the last few quarters,? IEV said.
As a result, the company has successfully negotiated a gas off-take reduction to a minimum of 1,296,000 MMBTU with Rabana enabling it to continue servicing its existing customers whilst removing excess gas off-take commitments.
IEV supplies gas to consumers in Indonesia?s West Java Province.
The amendment to the Supply Agreement is not expected to have any material impact on the consolidated earnings per share and/or net tangible assets per share of the group for the financial year ending December 31, 2017, the company said.
Editing by Reiner Simanjuntak