JAKARTA: Publicly listed oil and gas company PT Sugih Energy is aiming for a sharp increase in revenues this year from the US$5 million it pocketed last year backed by income from its trading subsidiary in Singapore.
“Our trading company has contributed most of the revenue this year,” Sugih Energy finance director and head of investor relations Pedro Flames told reporters after an annual shareholders meeting in Jakarta on Thursday, in reference to its Singapore-based subsidiary Sugih Energy International Pte. Ltd.
Sugih Energy booked $191 million in revenues in the first quarter of this year, already a significant increase from only $5 million by the end of last year. Flames said that revenues of $1 billion might even be possible given the company’s expanded deals and projects.
The company is looking to gain the government’s approval for a plan of development (PoD) on oil and gas exploration and production at the Akatara field in Lemang block, Riau. It has also sealed a deal on natural gas trading cooperation with state-owned electricity company PLN.
“We hope one of our main assets in Lemang block could get final PoD approval from the energy and mineral resources minister,” Sugih president director Andhika Anindyaguna said, adding that its asset in Lemang block was expected to begin operations by the end of this year.
Sugih Energy, through its subsidiary Eastwin Global Investment Ltd., will form a joint venture with Ramba Energy Limited subsidiary Hexindo Gemilang Jaya to operate the Lemang block that has reserves of around 511 million barrels of oil and 467 billion cubic feet of gas. Eastwin Global will hold a 49 percent working interest while Hexindo Gemilang Jaya will hold the remaining working interest.
Meanwhile, the five-year oil and gas trading contract with PLN is expected to see the company sell 8 billion British Thermal Units to the state firm.
“We aim for around $50 million of total revenue from this contract,” the president director said.
To support its business activities this year, Sugih Energy has provided around $35 million in capital expenditure, most of which will be disbursed to its trading and oil and gas companies.
