PT Surya Esa Perkasa Tbk.’s subsidiary PT Panca Amara Utama receives approval from Ministry of Energy & Mineral Resources for its gas price
Jakarta, 14 December 2012 – PT Surya Esa Perkasa Tbk. (“SEP” or the “Company”), is pleased to announce that its subsidiary, PT Panca Amara Utama (“PAU”) received news from Joint Operating Body Pertamina Medco Tomori Sulawesi (“JOBPMTS”), PAU’s gas supplier, that the gas price for PAU’s gas supply has been approved by the Ministry of Energy & Mineral Resources. The gas price approval is an important step towards final approval from SKMIGAS on the gas supply Heads of Agreement agreed upon between JOBPMTS and PAU.
PAU’s gas price will be linked to an indexed Ammonia price. At the current Ammonia price of USD 730 per metric ton, PAU will buy gas at a price of USD 8.60 per MMBTU.
In addition, the Company is pleased to announce that PAU has selected a Japanese EPC contractor to build its Ammonia facility on a turn-key basis. Further details shall follow soon once final agreements have been signed between the two parties.
To coincide with the gas price approval and selection of EPC Contractor, the Company held a Public Expose today to amend the Use of IPO Proceeds. Previously earmarked to fund the Company’s LPG plant expansion and debt repayment towards PT Bank UOB Indonesia, the Company’s Management proposed to revise IPO proceeds allocation towards development of PAU. LPG plant expansion shall be funded through internal cash with no delay in target start date of increased production.
About PT Surya Esa Perkasa Tbk.
SEP was established in 2006 to play an active and leading role in national self-sufficiency of downstream gas value-added products. Its main business is the refining and processing of natural gas to produce LPG (liquefied petroleum gas) and Condensate. It owns and operates the second largest domestic LPG refinery in Indonesia (excluding PSC Operators). The company is headquartered in Jakarta, Indonesia, with a production facility in Palembang, Indonesia. On 1 February 2012, SEP became the first LPG refiner to list on the Indonesia Stock Exchange (IDX ticker: ESSA).
In August 2011, SEP acquired 59.98% of PT Panca Amara Utama (PAU), a company that has received a 55 MMSCFD natural gas allocation from the Senoro-Toili Working Area in Central Sulawesi, Indonesia. PAU plans to build a 700,000 MT per year ammonia facility and is expected to begin commercial production in Q3 2015 with an estimated project cost of USD 750 million. This project supports the government’s directive to maximize domestic utilization and value addition of natural gas, in addition to strengthening national food supply security by encouraging fertilizer production.