IEV to sell CNG supply chain business in RI
Wednesday, November 15 2017 - 01:03 AM WIB
SGX-listed IEV Holdings Limited announced Tuesday it has put its compressed natural gas (CNG) supply chain in Indonesia up for sale and a third party is currently performing due diligence for the purchase of PT IEV Gas.
The company did not disclose the identity of the third party, nor the reason for the divestment of the asset.
The company also said in a statement that with regards to the value-added tax (VAT) dispute by PT IEV Gas with the Indonesia tax authority, a tax court hearing was recently presided by a panel of judges on November 2 in which the facts of the case and legal arguments were presented. At dispute is whether the various streams of revenue are subject to VAT during the 2013 tax year. The next tax court hearing is scheduled towards the end of November 2017 and further information will be provided when there is any material development.
According to its website, IEV currently operates a 4.5 million standard cubic feet per day (mmscfd) CNG supply chain in West Java which supplies CNG to industrial customers within a 200km radius without pipeline access, who are using CNG to replace more expensive fuels such as Liquefied Petroleum Gas or Marine Fuel Oil.
Elsewhere, the company said it continues to work on the farm out of Pabuaran KSO in West Java with interested parties. ?Additional funds will be required for the planned limited 3D seismic followed by the side tracking and possibly deepening of CLS-1TW to achieve a sustainable production volume,? IEV said.
The onshore project was awarded by PT Pertamina EP, a subsidiary of PT Pertamina, for the Pabuaran Block on Feb. 16, 2012 through the Kerjasama Operasi (KSO) also known as the "Operation Cooperation" program. The block is located 90 km east of Jakarta in the Subang district, West Java, Indonesia with a total acreage of about 77.036 square km.
Editing by Reiner Simanjuntak