Tangguh LNG Train 3 Finally
After four years of delay, final investment decision (FID) for Tangguh LNG train 3 project in Bintuni Bay, West Papua with US$8 billion of investment has finally been made Friday (July 1st). This is an important milestone to allowing construction start in the fourth quarter, which would create jobs for 10,000 people.
Medco-Newmont Deal: Conspiracy Theories
Shares of Medco Energy (MEDC) surged 21.3% in the opening minutes of trading at Indonesia Stock Exchange (IDX) Friday morning shortly after market participants got confirmation about Medco Group’s acquisition of PT Newmont Nusa Tenggara (NNT) despite limited understanding about details of the deal. The deal was announced in less than three days after the House of Representatives (DPR) passed tax amnesty bill into law.
Key Takeaways from Medco-Newmont Deal
Shares of Medco Energi (MEDC) gained 5.63% Thursday (June 30) as some investors responded confirmation of acquisition of shares in PT Newmont Nusa Tenggara (NNT). Shares of Bumi Resources Minerals (BRMS), which sells indirect interest 18% in PTNNT in the structured deal, meanwhile, advanced 4% with 343 million shares exchanged hands.
Medco-Newmont Deal
Newmont Mining Corporation has entered into a binding share sale agreement with PT Amman Mineral International (AMI) to sell its 48.5% interest in PT Newmont Nusa Tenggara (NNT) for a total consideration of US$1.3 billion. A consortium of Medco Group and AP Investment then acquiring 82.2% shares of NNT from PT AMI for US$2.6 billion.
Malaysians Acquire More Indonesian Plantation Areas
Malaysian companies continue to expand their plantation operations in Indonesia, taking benefit from persistent weakness of palm oil prices and difficulties to get new licenses ahead of moratorium planned by Indonesian government.
The Race to Control SES Block
South East Sumatra (SES) Block, which is located in the shallow water of the Java Sea off the southeastern coast of Sumatra Island, is one of oil and gas producing blocks whose production sharing contract (PSC) expires in 2018. CNOOC SES Ltd, subsidiary of China National Oil Company, is operator of the block.
Market Response to Brexit
Brent crude oil responded negatively UK’s decision to leave European Union with 3.83% fall to US$49 per barrel Friday (June 24), while WTI light sweet crude fell to US$48.2 per barrel. Metals, however, were mixed with gold gaining 4.3% to US$1315 per ounce, while aluminium down 0.53%.
Revisiting Tunas Baru Lampung
Plantation firm Tunas Baru Lampung (TBLA) has just released its audited financial statement for the period ended March 31, 2016, where the Company booked net profit of Rp65 billion, down 21.5% from the same period of 2015 due to falling sales revenue and squeezed margins. The Company is currently preparing the issuance of third bonds to refinance its existing debentures.
CPO Outlook: From El Nino to La Nina
The benchmark September 2016 contracts of crude palm oil fell RM28 to RM2372 per ton on the Bursa Malaysia Derivatives Wednesday (June 22) as market participants anticipated higher palm oil production in the second half. How further down the commodity depends on lots of factors, including movement of crude oil, weather pattern, and output of the competing vegetable oils.
M&A: South Natuna Sea Block B
Acquisition of ConocoPhillips and Chevron’s interest in the South Natuna Sea Block B oil and gas block has reportedly entered final stage. Three companies are competing for ConocoPhillips’ 40 percent operating interest in the block.