SPC acquires Coastal Indonesia Sampang Ltd from El Paso Corporation
Posted: 23 July 2004
The Board of Directors of Singapore Petroleum Company Limited (“SPC” or the “Company”) is pleased to announce that the Company has today through its wholly owned subsidiary, SPC Production Company Ltd (“SPC Production”), acquired from El Paso Production Oil & Gas Company (“ El Paso”) the entire issued and paid-up share capital of Coastal Indonesia Sampang Ltd (“Coastal”). El Paso is a wholly owned subsidiary of US-based El Paso Corporation.
Coastal owns a 40 per cent working interest in the Sampang Production Sharing Contract (“Sampang PSC”), located offshore East Java, Indonesia. The Sampang PSC contains the discovered Oyong oil and gas field.
The cash consideration of US$23.2 million plus working capital is arrived at on a willing buyer-willing seller basis taking into account the Company’s assessment of the oil and gas reserves in the Sampang PSC. SPC intends to fund the acquisition through internal resources.
Mr Koh Ban Heng, Chief Executive Officer of SPC, said, “The acquisition of Coastal is a strategic extension of SPC’s upstream business which will provide a more stable earnings stream in the long run. This acquisition will augment SPC’s role as an oil and gas producer in the growing regional oil and gas markets.”
The acquisition is not expected to have any material impact on the earnings per share and the net tangible asset per share of the SPC group of companies for the current financial year.
Background Information
SPC is a regional oil and gas company with interest in oil and gas development and production, refining, terminalling and distribution, marketing and trading of crude and refined petroleum products. It is an associated company of Keppel Oil & Gas Services Pte Ltd, a wholly owned subsidiary of Keppel Corporation Limited.
El Paso Corporation is one of the largest independent natural gas producers and the largest natural gas pipeline company in North America. The company has core businesses in pipeline, production and related energy products.
For more information see www.kepcorp.com and www.spc.com.sg
Posted by Richard Price,
Editor Pipeline Magazine
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