RAJA increases gas distribution volume in South Sumatra

IDX-listed energy provider company PT Rukun Raharja Tbk (RAJA), through its subsidiary PT PDPDE Gas, has increased gas distribution volume in South Sumatra, raising optimism for the company to book greater revenue this year, Kontan daily reported Thursday.

RAJA Corporate Secretary Cindy Budijono said that the gas distribution volume has been increased to 15 mmscfd from 10 mmscfd previously.

The company acquired 51 percent stake in PDPDE Gas last year. It obtains gas from the Jambi Merang gas field operated by Joint Operation Body (JOB) Pertamina-Talisman. RAJA also owns another gas distribution subsidiary PT Ergasindo Heksa.

The company expects revenue from gas distribution business to increase by 30 percent this year. The gas distribution business has been the largest contributor to the company?s total revenue, which is projected to jump by 50 percent this year.

Last year, revenue from gas sales jumped by 21 percent to US$98.6 million. In comparison, the company?s total revenue last year was $116 million.

Despite the solid performance in the gas distribution business, RAJA has yet to be able to realize its ambition to enter the oil and gas upstream business. In addition to participating in government tenders, the company has also approached oil and gas contractors for possible acquisition of upstream assets. (*)