Malaysian oilfield services firm and rig builder Coastal Contracts said it has entered into a joint venture deal with Indonesia’s PT Jaya Samudra Karunia Internasional.
Coastal Contracts will have a 49% stake in the JV which will allow the company to “tap into the growing LNG supply chain and to further expand its business activities in the LNG downstream sector,” the Malaysian company said in a filing to the stock exchange on Monday.
Under the binding memorandum of understanding, Coastal Contracts will acquire 215 ordinary shares in JSK Gas from Jaya Samudra Karunia International and Yudha Kurniawan Tanos for a total of $6.55m.
Upon completion, Coastal Contracts will hold 1,715 JSK Gas shares or 49% stake, the company said.
JSK Gas is a 99% owned subsidiary of PT JSK Internasional with headquarters in Jakarta.
JSK Gas owns 99% of PT Benoa Gas Terminal (BGT) with LNG regasification service provider as its principal activity. BGT is also the owner of a floating LNG regasification unit (FRU) with a maximum production capacity of 50 mmscfd which has commenced its operations in the second quarter of 2016. The FRU is a crucial part of the infrastructure which is built to supply natural gas to the 200MWh power plant operated by PT Indonesia Power in Bali, Indonesia.
“With this acquisition, together with JSK, as the owner of FRU and FSU that form essential part of the infrastructure to support the 200MWh power plant, CCB will be able to build a new portfolio of LNG related business which is core to the LNG downstream sector, especially for small-scale floating storage regasification unit (FSRU) which is suitable for archipelagic region, less capital intensive and requires shorter construction period,” Coastal Contracts said.