KUALA LUMPUR: Genting Bhd is selling a five per cent stake in its upstream gas development and downstream floating liquefied natural gas (FLNG) facility in Indonesia to PT Rukun Raharja Tbk and its subsidiary.
Genting said its 95 per cent-owned indirect units Genting Oil Kasuri Pte Ltd and Genting LNG Pte Ltd had signed agreements with the Indonesian energy group for the partial divestment.
The deal involves a five per cent stake in Genting Oil's participating interest under the production sharing contract (PSC) with SKK Migas, Indonesia's oil and gas regulator, for the upstream development of the Kasuri Block in West Papua.
Genting Oil currently holds the entire participating interest under the Kasuri PSC, for which it has received approval from the Indonesian government for the first plan of development covering the Asap, Kido and Merah fields within the Kasuri Block concession area.
The deal also includes a five per cent stake in Genting LNG's stake in PT Layar Nusantara Gas, the company developing the midstream facilities and the downstream inaugural FLNG vessel in Indonesia.
"The downstream divestment is expected to be completed by the end of July 2026, after the execution of the shareholders' agreement and fulfillment of other conditions provided under the agreement entered in respect of the downstream divestment.
"The completion of the upstream divestment, which is conditional upon, among others, approval from SKK Migas and Government of Indonesia as well as completion of the downstream divestment, is anticipated to occur no later than February 2027," Genting said.
Genting said the participation of Rukun Raharja, a well-established energy player in Indonesia, is expected to bring valuable local expertise and support smoother project execution.
It added that the collaboration marks an initial step towards building a deeper strategic partnership with a key local industry player in Indonesia.
"This latest collaboration complements the company's pivotal role as a key LNG value chain developer and enhances its growth prospects in the region," it said.
