Singapore?s Federal acquires 20% stake in PT Binaguna

SGX-listed Federal International (2000) Ltd announced Tuesday it had acquired a 20 percent equity stake in PT Binaguna Adi Sejahtera from PT Inticahaya Purnamandiri for a consideration of US$200,000.

"The strategic acquisition of a 20 percent stake in Binaguna will position us better to harness the business opportunities arising from the booming EPC (engineering, procurement and construction) market in the Indonesian oil and gas industry," said K. K. Koh, Federal's Executive Chairman and CEO, in a statement.

According to the statement, Binaguna is specialised in the sale, installation and maintenance of various products for oil and gas production facilities and it has a long clientele list, comprising multinational companies as well as large Asian and local corporations such as TotalFinaElf E&P Indonesie, Unocal Indonesia Company, PetroChina International Companies In Indonesia, ExxonMobil Oil Indonesia Inc., PT Exspan Nusantara, ConocoPhillips, BP West Java Ltd., PT Caltex Pacific Indonesia, PT National Oilwell Indonesia and Vico Indonesia.

Federal is principally involved in the distribution of flowline control products (including valves, structural steel, steel flanges/ connectors and pipe fittings) to the oil and gas, power, chemical and pharmaceutical industries. The company has secured some EPC contracts in Indonesia including Tunu field development project phase 9 in East Kalimantan and Cilamaya LPG plant project in West Java. (robert)