Rukun Raharja gets shareholders' approval to enter oil, gas businesses

Indonesia-listed firm PT Rukun Raharja Tbk will take over three companies involved in gas provision and engineering services as part of the company?s expansion into oil and gas industry.

Shareholders, in a meeting on Thursday, gave a go-ahead to the company to acquire 99.98 percent of PT Triguna Internusa Pratama, 99.98 percent of PT Panji Raya Alamindo and 99.99 percent of PT Capital Turbines Indonesia, according to Detik.com.

Total value of the acquisitions is Rp 650 billion (1US$ = Rp 9.050).

Panji Raya, through its subsidiary PT Energasindo Heksa Karya, operates a gas distribution network serving clients such as state electricity firm PT Perusahaan Listrik Negara (PLN) and other industries in West Java and Jambi with a capacity of 35 million standard cubic feet per day (MMSCFD).

Other Panji Raya?s unit PT Suryandra Nusa Bakti (SNB) is involved in filling, transportating and distributing liquefied petroleum gas (LPG) in Jakarta greater area, West Java and Medan, North Sumatra. It has an LPG-filling capacity of 410,000 kg per day and a distrubution capability of 40,000 kg per day.

Panji Raya has also planned to expand into oil and gas upstream business within two years.

Meanwhile, Triguna Internusa runs a gas distribution network in West Java and a gas compression equipment for a power plant owned by state owned electricity firm PT Perusahaan Listrik Negara (PLN) with a supply capacity of 35 mmscfd.

Capital Turbines is an electricity mechanical contractor. In 2008, the firm built a 2x22 MW power plant on Bintan Island. It plans to build several power plants with a total capacity of 130 MW in the next three years.

Rukun Rahardja is still exploring payment scheme for the acquisition.(*)