The Jakarta Post
Publicly listed oil and gas firm PT Medco Energi Internasional (MEDC) announced on Thursday it had signed an agreement to sell a majority stake in its unit, PT Medco Sarana Kalibaru (MSK), to Swiss-based energy firm Puma Energy LLC.
MSK is the liquid-fuel storage and distribution subsidiary of MEDC. Under the planned scheme, the Jakarta-based company will become PT Puma Medco Petroleum, after Puma takes over a 63.88 percent shareholding in the company.
MEDC will reinvest the proceeds of the share sale in Puma Medco Petroleum.
Speaking at a press conference in Jakarta, MEDC operations director Frilla B Yaman said the firm’s decision to sell its majority stake in its subsidiary was part of the company’s plan to develop its fuel trading and distribution business in Indonesia.
“We have been mulling the plan since last year, we believe that by forming a partnership with an experienced firm, we will get better value than carrying it out by ourselves,” she told reporters.
MSK’s assets in the downstream sector include a fuel storage facility for high speed diesel (HSD) in Tanjung Priok International Port in North Jakarta, which has a 22,700-cubic meter storage capacity.
The company also owns a dedicated jetty and truck loading bays, as well as a distribution network to supply diesel to mining firms in Kalimantan and Sumatra.
Budi Basuki, MEDC’s power, mining and downstream operations director, told reporters that before the acquisition plan, the annual revenue from its unit was approximately US$200 million.
Puma Energy strategy and investments head Robert Jones told The Jakarta Post that the company could not reveal the transaction value just yet, saying that it would wait for the approval of the Indonesian regulator before doing so.
Jones explained, however, that Puma Energy had been investing more than $1 billion per year in the company’s growth project and acquisitions overseas.
“Once the deal is completed and we have formalized our plans with our partners for the expansion we may reveal more details about what we intend to do,” he said.
Puma Energy director Michael Bourdier said the company had planned to build more fuel storage units, jetties and other infrastructure.
“We hope that we can start reaping profits [from the new venture] in the next three to five years,” he said.
Puma Energy is a mid- and downstream unit of Trafigura Beheer BV, a Swiss-based commodity-trading company, one of the world’s top oil and commodities trading houses.
Trafigura owns a majority stake in Puma Energy, while Angola’s Sonangol Holdings LDA, a subsidiary of the oil-rich African country’s state-owned oil company Sonangol E.P owns a 20 percent stake after a share sale late last month.
Puma Energy currently has business units in 32 countries in Africa, Latin America, the Middle East and Asia. In the midstream sector, Puma Energy supplies, stores and distributes petroleum products for the global market. The company’s current storage capacity is around 4.4 million cubic meters, which the company expects will increase to 5.3 million cubic meters by 2014.
In its downstream activities, Puma Energy offers gasoline, kerosene, jet fuel and lubricants among other products through a worldwide network of over 1,300 service stations.