Palm Oil Journal No. 35/2015: CPO Fund & El Nino
The Government is getting closer to implement the CPO Fund scheme by July 1st, 2015. The issue prevented crude palm oil (CPO) from deeper corrections Monday (June 15) amidst reports about higher output and stockpile in Indonesia and Malaysia.
Peter’s Gain, Public Shareholders & Felda’s Pain?
Shares of Felda Global Ventures Holdings Berhad crashed 8.6% in Kuala Lumpur Monday (June 15) morning after its trading resumed by authorities. Shares of Eagle High Plantation (BWPT), where Felda Global would have 37% shares, also retreated in Jakarta.
Felda Acquires Eagle High with 76% Premium, Peter Sondakh Bags US$697 Million Cash
Felda Global Ventures Holdings Berhad, the world’s largest palm oil producer, has agreed to become strategic partner of Rajawali Corpora (controlled by tycoon Peter Sondakh) in Eagle High Plantation (BWPT). Felda pays a premium of almost 76% to Thursday’s closing price.
Eagle High: Peter Sondakh & Malaysian Plantation Giant
Speculations continued at Eagle High Plantations (BWPT). This morning the stock surged 8% with almost 40 million shares exchanged hands in the first few minutes of trading. It is the most active stock traded on IDX.
Extension of Freeport’s Grasberg: Law & Politics?
Minister of energy and mineral resources Sudirman Said immediately dismissed earlier media reports about 20-year extension of Grasberg mine operated by PT Freeport Indonesia. The government, he said, has yet to approve such extension even though Freeport has expressed its willingness to convert its contract of works (COW) into Special Mining Business Permit (IUPK).
Saratoga Group’s Oil and Gas Play
PT Saratoga Investama Sedaya (SRTG) Tbk and PT Puncak Jaya Berlima have established PT Agra Energi Indonesia, which will conduct research and exploration of oil and gas. Saratoga invests US$7.5 million to get 30% shares in PT Agra Energi. This is clearly not the first time the group investing in upstream oil and gas business.
Samin Tan: ARMS & Borneo Lumbung
Sinarmas Group is getting closer to control Asia Resource Minerals Plc (ARMS), controlling shareholder of PT Berau Coal Energy (BRAU) Tbk. Where Samin Tan and his Borneo Lumbung Energi (BORN) will be in the equation?
Mineral Processing Investments Update
Despite prolonged weakness in metal prices, investors continue to pouring money in the country’s mineral processing industry. Sumatra Copper & Gold Plc, listed on ASX, but controlled by Indonesians, for example, has commenced open pit mining at Tembang gold-silver project in Sumatra with first gold pour during the fourth quarter of 2015.
GR 23/2015 on Aceh Oil & Gas: Those Affected
President Joko ‘Jokowi’ Widodo has on May 5, 2015 signed Government Regulation No. 23/2015 about management of oil and gas assets in Aceh province. Politically, Jokowi-Kalla administration gains something, because the regulation has been delayed for almost eight years by the previous administration of SBY.
Palm Oil Journal No. 34/2015: El Nino is Coming…
Australia’s Bureau of Meteorology released a statement titled ‘El Nino is Steadily Strengthening’ on Tuesday (June 9). The Bureau confirmed the El Niño in the tropical Pacific is continuing to strengthen.International climate models surveyed by the Bureau of Meteorology suggest further warming of the tropical Pacific is likely, with sea surface temperatures forecast to remain above El Niño thresholds for the remainder of the year.