At present, TEX holds a 49% direct interest in the SEP PSC through Kau 2 Pte Ltd, a wholly owned Singaporean company. TEX also holds an additional, indirect interest of 24.99% in the PSC through its 49% shareholding in Tembeling Oil Pte Ltd, a Singaporean company whose only other shareholder is PT Gema Terra (PTGT), a company incorporated in Indonesia. A free option to acquire a further 23.01% interest in the PSC exists through a participation agreement between PTGT and TEX.
Once this option has been exercised, upon an election by TEX to continue into the second term of the PSC, the Company will hold a 97% direct interest in the PSC with PTGT owning a 3% interest (carried) via a 3% shareholding in Kau-1 Pty Ltd. At this stage both Tembeling Oil Pte Ltd and its wholly owned Singaporean subsidiary company Sepapua Energy Pte Ltd, would be wholly owned subsidiaries of Kau-1 Pte Ltd, another Singaporean company wholly owned by TEX.
The East Papua JSA was applied for by TEX and PT Paradisea (PTP – a wholly owned subsidiary of PTGT) in a 50/50 partnership. When the acreage is gazetted it is likely to be bid for directly by a new Singaporean special purpose entity (SPE) wholly owned by Transform. PTP will hold a minor equity interest in this new SPE and be free-carried through to production, at which point the cost of the carry will be repaid.