Raharja Energi Cepu Wins SMSDL Acquisition, Strengthening Energy Portfolio

Strategic Acquisition in Oil and Gas Sector

PT Raharja Energi Cepu Tbk (RATU) has been announced as the winning bidder for SMS Development Limited (SMSDL), marking a significant milestone in the company's growth strategy. SMSDL holds a 20% indirect stake in Husky-CNOOC Madura Limited (HCML), the operator of the Madura Block, one of East Java's largest gas producers.

Key Assets and Production Details

The Madura Block, operated by HCML, comprises three main production clusters: BD Field, 2M Field (MDA-MBH-MDK), and MAC Field. The block currently produces approximately 240 MMSCFD of gas and has substantial remaining reserves of 708 BCF gas and 8.42 MMBOE condensate. These reserves make it a strategic asset for Indonesia's energy needs.

Business Impact and Next Steps

RATU's acquisition of SMSDL represents the company's entry into a significant gas-producing asset. According to Sumantri Suwarno, RATU's CEO, this acquisition aligns with the company's strategy to expand its upstream oil and gas portfolio. However, the transaction is still subject to regulatory approvals, including compliance with Otoritas Jasa Keuangan (OJK) regulations regarding material transactions and information disclosure.

Company Background

RATU is an investment company focused on upstream oil and gas operations. The company holds direct control over the Jabung Production Sharing Contract (PSC) through its subsidiary PT Raharja Energi Tanjung Jabung (RETJ) Ltd with an 8% participating interest. RATU also has an indirect stake in the Cepu PSC with a 2.242% participating interest. The company recently went public on January 8, 2025, listing on the Indonesia Stock Exchange under the ticker RATU.