Surya Esa, Mitsubishi provide loan to finance ammonia plant project

By Romel S. Gurky

IDX-listed PT Surya Esa Perkasa Tbk said it had on September 15 signed an agreement with Mitsubishi Corporation (MC) to provide a total US$50.10 million of subordinated loan to subsidiary PT Panca Amara Utama (PAU).

Surya Esa said in a statement on Wednesday it provided $24.20 million to the loan facility and MC $25.90 million.

PAU is currently completing the construction of an ammonia plant with capacity of 2,000 mtpd in the District of Banggai, Central Sulawesi. President Joko Widodo inaugurated on August 2 ground breaking of the project.

To help complete the project, PAU needs additional financial support from the International Finance Corporation (IFC), the company said.

?Furthermore, in connection with the IFC loan, PAU also needs support from several shareholders. Therefore, the company and MC with effective ownership respectively of 60.00% and 29.73% have performed the transaction (subordinated loan),? Surya Esa said.

Surya Esa said PAU has made significant steps to realize the project as follows:
1. PAU has been allocated with 55 MMSCFD of gas from Senoro-Toili gas wells in Donggi-Senoro block until December 2027.
2. PAU has completed the acquisition of 192 hectares of land required for the project. Land clearing of 25 hectares of land has also been completed. The land is ready for construction.
3. PAU has appointed PT Rekayasa industri as EPC contractor of the project.
4. PAU has signed a technology Licensing Agreement with Kellogg Brown & Root (KBR).
5. As of the end of June 2015, Surya Esa has invested about $87 million in PAU.

Editing by Reiner Simanjuntak