Mitra Rajasa to expand business to oil, gas and coal logistics

JSX-listed cement transportation firm PT.Mitra Rajasa is planning to expand business to oil, gas support industry by acquiring a company that owns a floating production, storage and offloading (FPSO) facility.

The company said in a public expose material filed with the JSX on Wednesday said that it would conduct right issue in November this year to raise funds to acquire a Singapore-incorporated firm Sabre System International Pte. Ltd. (SSI), which owns “Sea Good 101” FPSO, which is currently being contracted for 6 years to Santos for Oyong oilfield offshore East Java with contract value of US$78 million.

The company will also acquire 100 percent shares of oil and gas services firm PT.Pulau Raya Kencana, the expose revealed.

The company also said that it was planning to construct the second FPSO with storage tank of 150,000 barrels. The second FPSO, which will cost the company US$45 million, would started to be built in 2008 with completion seen in two years’ time.

Beside oil and gas sector, the company is also planning to acquire tugs and barges to service coal transportation. (denny)