Petrogas Decides Against Taking Sampang Stake

PT Petrogas Oyong Jatim, the company nominated by the Indonesian Government to take up a 10.0% undivided interest in the Sampang PSC (the "Interest") has decided not to acquire the interest, announced Singapore Petroleum Co. Limited (SPC). Under the terms of the Sampang PSC (as with other Indonesian production sharing contracts), the Indonesian Government has the right to nominate an Indonesian entity to participate in the Interest. SPC's interest in the Sampang PSC would have been 36% and its economic interest in the Jeruk field approximately 19.6% had Petrogas decided otherwise.

SPC's participating interest in the Sampang PSC will therefore remain at 40.0% and its economic interests in the Jeruk field at approximately 21.8%.

By way of background, Petrogas is a wholly owned subsidiary of PT Petrogas Wira Jatim ("PWJ") a limited liability company in the form of Regional Government Business Enterprise established under the laws of Indonesia. PWJ is set-up and wholly-owned by the Provincial Government of East Java, Republic of Indonesia, to manage its 10.0% Indonesian Participation interests within the East Java provincial boundaries such as the Sampang and Madura Offshore PSCs.

FINANCIAL IMPACT

The Group does not expect the above 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.

SPC is a regional oil and gas company with interest in oil and gas exploration 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.

SPC holds its interest in the Sampang PSC through its wholly owned subsidiary, Singapore Petroleum Sampang Ltd.

Participants in the Sampang PSC are therefore as follows:

  • Singapore Petroleum Sampang Ltd, 40.0%
  • Santos (Sampang) Pty Ltd., 45.0%
  • Cue Sampang Pty Ltd, 15.0%

The economic interest in the Jeruk field is therefore approximately:

  • Singapore Petroleum Sampang Ltd, 21.8%
  • Santos (Sampang) Pty Ltd., 45.0%
  • Medco Strait Services Ptd Ltd, 25.0%
  • Cue Sampang Pty Ltd, 8.2%

Santos (Sampang) Pty Ltd is a wholly owned subsidiary of Santos Limited, an Australian based energy company, operating internationally, with interests and operations in every major Australian petroleum province and in the United States, Indonesia, Papua New Guinea and Egypt.

Cue Sampang Pty Ltd is a wholly owned subsidiary of Cue Energy, which is an Australian publicly listed oil and gas exploration and production company, based in Melbourne. Cue Energy has operations in Papua New Guinea, Indonesia, New Zealand and Australia.

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