SINGAPORE (Nov 9): Boustead Singapore as part of a consortium with One North Energy Private Limited and Lamara Energy has agreed to acquire Triangle Energy (Global)’s 100% interest in the Pase Production Sharing Contract in Aceh, Sumatra, Indonesia.

The consortium has agreed to the purchase consideration of US$3.9 million ($5.5 million).

Boustead will have a shareholding of 83% of the consortium, which will incorporate a Singapore entity for the purposes of the acquisition in the future.

Boustead’s share of the purchase price will be funded through its internal resources.

Pase PSC encompasses 922 sqkm of explorable acreage and has a proven field containing natural gas reserves in Aceh.

This means the group will be able to shift into upstream ownership, production and potential development of natural gas, which is seen as the primary alternative and a cleaner fuel for power plants compared to coal.

Boustead Singapore says the acquisition will provide the group with “an excellent opportunity” to expand its energy-related engineering division, which is the second largest revenue contributor to the group after the real-estate solutions division under Boustead Projects.

The acquisition will also provide the group with the ability to grow its recurring revenue base further.

Meanwhile, the current business environment in the global oil & gas industries is depressed due to low crude oil prices. This has in turn resulted in attractive valuations for energy assets.

Boustead Singapore last traded at $1.03.