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ublicly listed oil company PT Benakat Integra has revised its Sept. 3, 2013 deal with Goldwater Indonesia Inc. and booked a lower transaction value, but with more payment for oil and gas reserves.

According to a supplemental agreement both sides signed last Friday, they agree to revise the transaction value from the US$78.5 million stipulated in the 2013 conditional sale and purchase agreement (CSPA) down to $60 million.

The transaction value is for a 100 percent stake that Benakat Integra controlled in its subsidiaries PT Benakat Oil and PT Indelberg Indonesia and sold to Goldwater, a subsidiary of Singapore-listed Interra Resources Ltd., Benakat Integra said in a press statement released on Monday.

In addition to the transaction value, Benakat Integra and Goldwater also agree to further payments for an amount of Benakat'€™s oil and gas reserves.

'€œThe supplemental agreement provides more value for Benakat because it takes into account oil and gas reserves in the Baung area [South Sumatra],'€ Benakat Integra president director Wibowo Suseno Wirjawan said in the statement.

Wibowo said that under the supplemental agreement, further payment was set at $5 per barrel for the first 4 million barrels of reserve oil and $3 per barrel for reserve oil exceeding 4 million barrels.

Another formula for additional payments was also set under the supplemental agreement for gas reserves by taking into account an equivalent economic value determined by UK-based petroleum consulting company Gaffney, Cline and Associates (GCA).

Benakat Integra'€™s growth has been particularly attributed to its acquisitions.

The company acquired a 37 percent stake in Jakarta-listed oil and gas services provider PT Elnusa in 2010, before it purchased 10.3 percent shares of petrochemical tanker company PT Buana Listya Tama a year later.

The company reported that its first-quarter net profit reached $14.13 million, skyrocketing from $297,290 in the same period last year, partly as a result of its acquisition of mining infrastructure company PT Astrindo Mahakarya
Indonesia.

According to Wibowo, Benakat Integra'€™s acquisition of Astrindo contributed 94 percent to the company'€™s total revenue that reached $87.68 million in the first quarter of this year, or a 99 percent increase from $8.02 million in the same period last year.

In June, Benakat reportedly set aside up to $32 million to buy back as many as 3.65 billion shares from public shareholders, equivalent to 10 percent of its equity.

The company, setting a maximum price for the buyback at Rp 300 a share, will carry out the plan over the next 18 months.

The company said the buyback was also expected to lift the company'€™s earnings per share and return on equity, two indicators for investment return.

Shares of Benakat were traded under the code BIPI on the Indonesia Stock Exchange (IDX) and closed at Rp 119 apiece on Monday, decreasing by 2.46 percent from Rp 122 at the previous closing. (gda)