Richland to spend $150m to acquire Indonesia upstream assets

Singapore Exchange-listed firm Richland Group Limited said on Tuesday it would pay US$150 million to Tristar Global Holdings Corp. to acquire the latter?s stake in Elnusa Tristar Ramba Limited (ETR).

The company said that under the amended LoI both parties had signed, it would pay 10 percent or US$15 million in cash and the remaining 90 percent would be in the form of Richland?s shares.

Richland also said that TriStar has agreed to grant it a right of first refusal to acquire TriStar?s interest in Lemang PSC and Suci Operation Cooperation Contract.

The Lemang block (4,238 square km) is located onshore in South Sumatra within Riau province in the West and Jambi province in the East. The Suci block (1,538 square km) is located onshore on the East Java Basin, about 40 km northwest of Surabaya city. TriStar?s concessionary right to the Suci block is in the form of a certain working interest under a Joint Operation Contract with PT Pertamina (Persero), the company said. (alex)