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. 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.

Oil & Gas

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.

Oil & Gas

Downstream – Gas 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.

Power

Independent Power Producer (IPP) Development and Investment

Valco has been in the power business since 1993 from an EPC contractor to a power plant developer. We have developed a 60 MW power plant in Medan and have been engaged in preliminary stages of developing two additional IPP power plants with capacity ranging from 150 to 300 MW.

Total investments which we have been putting in place in developing in these power plants are in excess of USD 400 million and all of the capacity generated is planned to be sold to Perusahaan Listrik Negara (PLN). We have a credible and technically competent dedicated team that overlooks the planning and development of these power plants.

With Indonesia severely lacking of power especially in the islands of Java, this would give Valco opportunity to further develop more IPP’s either coal, diesel or gas fired depending on the proximity of these opportunities and its distance from either of these resources.

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Telecommunication

With a vast potential of variety of subscribers in Indonesia and the influx of foreign operators eyeing a foothold in Indonesia thus provides a market space for Valco to participate.

Valco in partnership with a large global telecommunication operator is currently in the midst of reviewing an acquisition strategy which could potentially place Valco in a forefront in taking advantage of the potential that Indonesia has to offer within the telecommunication sector.

The focus has always been towards network and operator status and thus migrating to other value added services. Valco has ambitions through its partnership to introduce new telecommunication technology which could enhance the connectivity between users and provide greater bandwidth and products.

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Mining

Resources - Metals & Mining

Valco with its equity partners are embarking on an acquisition which will enable it to setup a platform to grow into a global leader in the metal and mining space. These acquisitions which in total carry an enterprise value in excess of USD 2 billion.

These assets are located in diverse parts of Indonesia. Plans are also afloat in acquiring proven and producing resources assets in Australia and South Africa. We have assembled a management team which has proven to be credible and technically competent in growing the resources business onto the global platform.

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Investments & Private Equity

Valco through its subsidiary Valco Capital is involved in the areas of private equity and advisory. We normally target to invest in private companies seeking growth capital with a view of an exit through public offering or trade sale.
Typically we take long term investments horizons normally between 7 years to 15 years period in order for investments to reap as much returns as possible. It is also gives us to participate in diverse energy and infrastructure business by getting involved on day to day operations.
There are instances where we would get involved in taking companies private too. This is to provide the company the much needed restructuring and reinventing of business models by injecting the needed capital for such transformation to take place.
We work closely with our equity capital partners primarily from Middle East and China in executing these transactions. In terms of transaction sizes we do transactions anything the sizes of USD 200 million to USD 1 billion where we structure club transactions of these sizes in various assets classes and instruments. We also seek board representations and management control as part of these transactions. We do growth capital, distressed special situations and buyout funds.

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Agriculture

Agriculture - Palm Oil

Valco is in the midst enlarging its agriculture portfolio especially in the areas of palm oil. It has Greenfield landbank in east java and is also currently planning to acquire 40,000 ha of mature plantation of ages 8 to 10 years in Sumatra with a total valuation in excess of USD 120 million.
These matured plantations have existing operations with competent management. There are 4 mills which operate in this existing plantation.

We are also working on synergies with middle east downstream companies that would enable us to develop and fully integrated food business from upstream to downstream given that there are a lot of downstream companies which prefer to integrate with upstream companies in order to secure the supply of palm, rice and etc thus Valco is spearheading its activities within the agriculture to move in this direction.
With the large landbank that Indonesia has which is relatively untapped it presents a unique potential for food commodities like palm and rice to be cultivated on mass basis.

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