Kulim to acquire 60% stake in CSE
Thursday, December 11 2014 - 01:21 AM WIB
Malaysia?s oil palm plantation group Kulim Bhd through subsidiary Kulim Energy Nusantara Sdn Bhd plans to acquire a 60 percent interest in Indonesia?s PT Citra Sarana Energi (CSE) for US$133.55 million.
Kulim said in a statement Wednesday that it would buy the shares from PT Wisesa Inspirasi Sumatra (WIS) and PT Inti Energi Sejahtera (IES).
CSE is engaged in exploration and development of oil and gas field in South West Bukit Barisan Block (SWBB PSC), Central Sumatera.
The Government of Indonesia awarded the SWBB PSC to CSE subsidiaries PT Radiant Bukit Barisan E&P (RBB) and SKR International Ltd on November 13, 2008 for a period of 30 years. CSE owns 99.9 percent stake in RBB, an upstream oil and gas firm, and 100 percent shares in SKR, a services and trading company.
The exploration activities cover an initial exploration period of six years before commencement of oil and gas development and production. On October 31, 2014, the upstream oil and gas authority SKK Migas approved for the extension of SWBB PSC?s exploration period for up to four years.
Under the SWBB PSC, RBB and SKR have participating interests of 51 percent and 49 percent, respectively in the SWBB block whereby RBB has been appointed as the operator.
The SWBB block is located onshore in West Sumatera province and situated within the Ombilin Basin (part of elongated trend of Central Sumatera basin). The original exploration area of SWBB PSC was 3,895 square (sq) kilometers (km). Currently, the exploration area has been reduced to 779 sq km mainly due to compulsory relinquishment exploration area under the terms and conditions of the SWBB PSC.
Editing by Reiner Simanjuntak