Majority state-owned refiner Bangchak Petroleum Plc (BCP) will pay A$22.2 million (661 million baht) for a nearly 20% stake in Australian oil and gas explorer Nido Petroleum Ltd.
This ship is part of Nido Petroleum’s operations in Philippine waters. Bangchak Petroleum is obtaining a 20% stake in the Australian oil and gas exploration company.
The move is aimed at expanding Bangchak's international portfolio and leverage business risks.
Wholly-owned Singaporean subsidiary BCP Energy International has entered into a share-sale agreement with Petroleum International Investment Corporation, incorporated in the British Virgin Islands, for 402.95 million fully paid ordinary shares of Nido.
The Australian company explores and produces petroleum and natural gas in Australia, Bangchak president Vichien Usanachote said in a filing with the Stock Exchange of Thailand yesterday.
He said BCP Energy was set up with initial registered capital of US$100,000 for the purpose of international investment in and the trading, operation and management of the energy, natural resources and petrochemical business.
Bangchak plans to use its own working capital to raise the capital of BCP Energy to A$22.2 million to fund the Nido share acquisition.
“The company expects the transaction will support increased revenue and net profit for Bangchak with a stable cash flow in the long term and expand the business and diversify risks into the international market,” said Mr Vichien.
He said SET-listed Bangchak was diversifying from oil refining and trading into renewable energy and related businesses to create a more sustainable revenue stream.
Listed on the Australian Securities Exchange in Sydney, Nido has petroleum concessions in the Philippines and Indonesia.
At the end of last year, Nido had assets worth A$152 million and liabilities of A$49.9 million.
Its 2013 revenue was A$40.9 million for a net profit of A$15.7 million.
“The advantage of Nido is that the company already has petroleum blocks in operation as well as others in development and additional potential locations," said Mr Vichien.
"That translates into growth potential for our company in terms of revenue contribution and prospects.”
Nido’s operating assets include the Galoc oilfield in the Philippines’ Palawan Basin, while western Linapacan, also in the Philippines, is now being explored, Mr Vichien added.
BCP shares closed yesterday on the Stock Exchange of Thailand at 28.75 baht, down 25 satang, in trade worth 86.9 million baht.