Singapore’s Temasek sells oil exploration unit

December 3, 2009
Singapore Democrats

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Kevin Lim

Singapore state investor Temasek announced on Thursday it has sold oil exploration unit Orchard Energy to a Singapore-listed firm, less than two years after setting up the unit.

RH Petrogas will pay S$351,000 to S$371,000 for Orchard, which holds a production-sharing contract for an area in Indonesia’s South Sumatra, RH Petrogas and Temasek said.

The Singapore-listed firm will take over Orchard’s commitment to provide another $5.66 million as part of the production-sharing deal.

With the exit from Orchard, which Temasek set up in April 2008 to venture directly into the region’s oil and gas sector, the Singapore sovereign fund’s interest in energy exploration will be through companies that it owns stakes in.

These include San Antonio International, an onshore oilfield service company in Latin America; MEG Energy, which is involved in developing Canada’s oil sands; and Citic Resources, a large Chinese provider of natural resources.