Another RTO Attempt for Hery H Herijanto’s Assets
Advance Holdings Limited has on January 21 entered into a non-binding term sheet in relation to the proposed acquisition of companies directly and indirectly controlling plantation and forestry concessions in Indonesia. Looks like that this is the second attempt following the collapse of previous reverse takeover (RTO) by another SGX-listed firm Jaya Holdings Ltd.
Oil & Gas Regulation: Gross Split (2)
Compared to the cost recovery scheme, the gross split scheme promises fairness to investors and less bureucratic in business process. Fair, because investors may proceed with the cost recovery scheme if their oil and gas blocks are extended, but the terminated blocks will have to implement the gross split scheme.
Oil & Gas Regulation: Gross Split (1)
Minister of energy and mineral resources Ignasius Jonan has issued Regulation No. 08/2017 about gross split production sharing contract (PSC). Offshore North West Java (ONWJ) block is the first PSC to use the scheme to replace the existing cost recovery scheme. What should you know?
Coal Journal No. 02/2017: Output to Watch
Thermal coal has left its recent peak of US$110, but has been hovering above US$80 per ton for quite sometime now. On Thursday, tradingeconomics.com recorded coal at US$83.85 per ton. Crude oil movement (hovers above US$50 per barrel), demand, and output, including in China, will continue to affect the mineral fuel.
Revisiting Soeryadjaya-Provident’s Copper-Gold Projects
Shares of Finders Resources Ltd on ASX surged by 17.24% this morning as investors were upbeat with performance of copper cathode plant in the Wetar Island, Maluku province for the quarter ended December 31, 2016. Finders claimed full production of the smelter in the quarter with significantly low cash operating cost.
ONWJ Block & The Bakries
The government has decided to grant 90% interest in Offshore North West Java (ONWJ) oil and gas block to Pertamina, while the balance of 10% is granted to local governments of West Java province. How about Bakrie Group, which previously held 36.72% interest in the block?
ONWJ Block: Lessons Learnt
The government has finally granted Offshore North West Java (ONWJ) to state oil and gas company Pertamina (90%) and local governments of West Java province (10%). ONWJ also becomes the first major oil and gas block to implement gross split scheme. Lessons learnt?
Masela Block & Petrochemical Industry
So, the government of Indonesia and investors of Masela Block (offshore Maluku) have agreed to boost natural gas production to 10.5 million tons per annum. They, however, have yet to agree on portion of gas processed into LNG and other, including petrochemicals. Looking at President Jokowi’s recent address about natural resources, the chance is big for petrochemicals.
Plantation Journal
The benchmark April 2017 contracts of crude palm oil advanced RM49 to RM3159 per ton Tuesday (Jan 17), while March contracts surged by RM54 to RM3197. Contracts for the remaining months of 2017 were settled around RM3000 per ton. Natural rubber, meanwhile, retreated to below 300 yen yesterday.
Revisiting Sawit Sumbermas
Palm oil producer Sawit Sumbermas (SSMS) has just released its Jan-Sep 2016 results, where the Company booked net profit of Rp287 billion, down 24.6% from the corresponding period of 2015 due to squeezed margins. SSMS, which has recently secured huge financing commitment from state bank, reported significantly stronger performance in the third quarter.