Established in 1919, Clough delivers an integrated Engineering, Procurement and Construction service primarily to oil and gas projects in Australia, South East Asia and the USA. The Group's services range from concept development through design, construction, installation, commissioning, operations and maintenance.

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Clough Strengthens Oil and Gas Focus

26 February 2009

Engineering and construction company Clough Limited (ASX:CLO) today announced it has entered into a binding Heads of Agreement to sell its 82% stake in PT Petrosea Tbk to PT Indika Energy Tbk for USD83.8m – approximately AUD129m at current exchange rates. 

Over the past 12 months Clough has been strategically repositioning its business primarily in the oil and gas sector.

“We believe that Clough is best served by divesting of non-core assets and focusing our attention and resources on our core markets. The sale is a positive step towards our strategic goals” said John Smith, Clough’s Chief Executive Officer.

Petrosea represents an excellent business fit for Indika Energy with clear synergies in coal production and construction and provides growth opportunities for the company and its loyal employees. As part of this sale, Indika Energy and Clough have agreed to collaborate on future joint ventures in offshore oil and gas projects in Indonesia, through Tripatra, a subsidiary company of Indika Energy.

“By releasing funds through this sale Clough is in an excellent position to accelerate its oil & gas growth strategy with current market conditions proving favourable for acquisition” said John Smith. 

“We look forward to continuing a good relationship that adds value to all companies involved” he added.

It is expected that this transaction will result in a pre-tax gain of approximately USD13m, (AUD20m) based on Clough’s recently released half year results.

To view the Media Presentation click here.

Ends

For further information, please contact:

John Smith, Chief Executive Officer +61 8 9281 9407
Kristy McGrath, Manager Marketing  +61 8 9281 9344/ 0448 877 298

About Clough

Clough delivers an integrated Engineering, Procurement and Construction service to projects in the oil and gas, mineral and infrastructure sectors in Australia and across South East Asia. The Group's services range from concept development through design, construction, installation, commissioning, operations and maintenance.
 
We deploy a first class suite of integrated management systems and are committed to the concept of zero harm and the wellbeing of our people and to the sustainability of the environment and communities in which we work.