Oil & Gas
Upstream – Exploration and Production (E&P)
Valco through its E&P dedicated unit has been actively looking in acquiring exploration and production assets. It has a dedicated robust management that is operating and currently involved in acquiring oil and gas assets of total approximately production of 40,000 bopd and 120mmcf per day with an estimated combine d valuation in excess of USD 500 million.
These assets are located in West Java, South Sumatra, Central Kalimantan and Natuna Sea. The unit has carefully studied prospects across Indonesia and now involved in acquiring a portfolio combination of exploration and production assets. Further expansion is envisaged with assets acquisition lined up on an international scale more so in South East Asia, North Sea and North Africa. Potentially we would leverage our exploration and production assets, we will continue to strengthen synergies for business opportunities within our downstream and power business units.
Midstream – Transportation and distribution
Valco is involved in a two party JV in developing 3 gas pipeline projects on Java Island and it is has reached financial close and is now about to commence construction. The commercial value of these three pipelines is estimated to be close to USD 400 million. The offtake and gas sales agreements have all been executed between the suppliers and buyers with an average term of 15 years. We are also studying possibilities of establishing an integrated energy model which utilises gas from Valco related fields to power plants which we would develop and this would require necessary pipelines which would add to the current portfolio of assets that we developing.
Downstream – LPG Plant and Trading
Valco is currently developing an LPG plant in South Sumatra in a three party partnership. It is about to commence construction with a project valuation of USD 300 million. We are also in partnership with reputable global trading companies in facilitating trading between in and out of Indonesia for various gasoline grade products. Given that Indonesia is a net importer country this provides enormous opportunity to companies like us to capitalise in facilitating trading potential in and out of Indonesia.