RAJA to expand into oil and gas upstream industry

Gas distributor PT Rukun Raharja Tbk (RAJA), plans to expand into oil and gas upstream industry by acquiring existing oil or gas fields, one the company?s executive has said.

Priyo Saryanto Brodjonegoro, the Director for Production, said in Jakarta on Thursday that RAJA planned to acquire three oil and gas fields from existing operators as part of the expansion plan.

He did not mention the names of the operators but said that the three fields had been in production stage. He said that RAJA would acquire the three fields through a tender mechanism, and the result would be announced in February, next year.

?In the initial stage, we will begin with a shalow well with a depth of about 300 meters, with investment of between $300,000 and 400,000 per well,? he added.

To support its gas distribution business, last year RAJA acquired PT Panji Raya Alamindo (PRA) dan PT Triguna Internusa Pratama (TIP), which are involved in gas production and distribution activities. In July, this year, TIP acquired another gas distributor PT Trimitra Cipta Mandiri. (*)