Leasing minnow turns into oil, gas company

IDX-listed leasing minnow PT Indocitra Finance Tbk is planning to raise US$ 360 million through right issue with proceed will be used to finance its venture into oil, gas business.

The company disclosed in a prospectus released on Friday that the it would use the proceed to acquire 99.65 percent shares at Jersey-incorporated company Amstelco Plc and acquisition of 99.99 percent of PT Amstelco Energy Resources (AER).

Amstelco through its unit Amstelco Karapan Limited has 100 percent participating interest in Karapan PSC offshore East Java which was awarded in May 2010. The company said that Amstelco is planning to farm out part of interest in the block to third party.

Amstelco is also mulling to enter LNG receiving terminal business in East Java and will scout for LNG supply sources to be delivered to domestic market.

AER is another business acquired with the intention of cooperating with local governments to tap opportunity to get 10 percent of Indonesian Participation (IP) rights at oil, gas blocks. Indocitra claimed in the prospectus that AER has signed agreements with Jambi and East Java provincial administrations, in which AER will have exclusive right to study each IP rights available in the two provinces and has first right to partner with them in executing the IP rights.(alex)