Linc Energy strikes licensing deal with Indonesia firm
OIL and gas company Linc Energy said that Indonesian mining firm PT Sugico Graha will license Linc's proprietary underground coal gasification (UCG) technology for its projects in Indonesia.
Sugico will pay Linc a licence fee of US$17.5 million in two tranches subject to various criteria, as well as a production payment, or royalties, of US$0.3125 per million British thermal units (mmBtu) of synthesis gas.
Sugico is in the early stages of developing two commercial UCG projects in Indonesia.
The first, in South Sumatra, will use UCG-produced synthesis gas to generate electrical power. The first phase of this project is expected to reach financial closures in 2016 and achieve its specified performance during 2017.
The second, in South Kalimantan, will use UCG-produced synthesis gas to produce chemicals. It is in the concept phase of development, expected to reach financial closures in 2017 and achieve specified performance in 2020.
Linc Energy last traded on Thursday at S$0.061, up S$0.002 or 3.4 per cent, before this latest announcement.
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Companies & Markets
Japfa posts US$12.4 million Q1 profit, reversing from year-ago loss of US$43 million
PayPal lifts 2024 profit forecast as spending stays resilient, margins improve
Walmart to shut all health centers in US over lack of profitability
Japan may have spent 5.5 trillion yen on Apr 29 intervention, BOJ data suggests
3M to cut dividend on health-care spin, losing aristocrat status
OCBC should be seen as ‘financial conglomerate’ unlike local banking peers, says chairman