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    Indonesia's PGN to Acquire Stake in US Shale Gas Block

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Summary

Saka Energi Indonesia, a subsidiary of state-owned Perusahaan Gas Negara (PGN), is close to acquiring 36 percent of participating interest in Swift Energy’s shale gas block in Fasken in United States.

by: shardul

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Asia/Oceania

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Indonesia's PGN to Acquire Stake in US Shale Gas Block

Saka Energi Indonesia, a subsidiary of state-owned Perusahaan Gas Negara (PGN), is close to acquiring 36 percent of participating interest in Swift Energy’s shale gas block in Fasken in United States, according to a statement by Swift Energy published on May 6.

The transaction, valued at $175 million, is likely to be complete by June 30.

Fasken block is located in Eagle Ford, Houston, Texas.

The payment will take place in two stages. The consideration is comprised of $125 million in cash to be paid at closing and $50 million in cash to be paid by Saka to carry a portion of Swift Energy’s future field development costs.

Saka's operational director Tumbur Parlindungan said that the move into US shale gas space was aimed at gaining knowledge on shale gas technology that can be put to use in Indonesia, reports Indonesia website kontan.co.id.

Parlindungan added that this expansion will also ensure long term gas supplies to Indonesia as country is witnessing rapid rise in natural gas demand. 

 

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