Boustead proposes to acquire energy asset in Indonesia

SINGAPORE - Boustead Singapore has proposed to acquire an energy asset in Indonesia.

Together with One North Energy Private and Lamara Energy, it has entered into an agreement with ASX-listed Triangle Energy (Global) to acquire the latter's 100 per cent stake in the Pase Production Sharing Contract (PSC) in Aceh, Sumatra, for US$3.9 million (S$5.55 million).

Boustead will own 83 per cent of the consortium, which will incorporate a Singapore entity for the purposes of the acquisition in the future, the company said in a filing with the Singapore Exchange on Monday (Nov 6).

One North and Lamara will hold the remaining 17 per cent. In addition, Boustead has agreed to carry the other consortium partners for 10 to 12 per cent such that the underlying economic interest (and shareholding in future ) will be about 71 to 73 per cent and 27 to 29 per cent respectively.

Boustead will be able to recover the amount of carry out of the consortium's cash flows.

The contract includes other potential purchase considerations which depend on the performance of the Pase PSC.

Boustead said the acquisition will provide the group with an excellent opportunity to expand its energy-related engineering division, which is the second largest revenue contributor to the group after the real estate solutions division.

As Pase PSC encompasses 922 sq km of explorable acreage and has a proven field containing natural gas reserves in Aceh, the group will be able to shift into upstream ownership, production and potential development of natural gas.

The purchase price will be funded through Boustead's internal resources.