Ocean Sciences Extends Lease by Three Years at Takalar Seaweed Facility in South Sulawesi
Ocean Sciences Ltd (ASX:OSS) OSS (ASX:OSS) announced that its Indonesian subsidiary, PT BPH Global Indonesia, has signed an agreement to extend the lease on its approximately 3.4-hectare coastal property at Laikang Village, Takalar Regency, South Sulawesi. This extension adds three years to the original two-year lease, extending the total lease period to five years, ending in April 2031.
Key Points
PT BPH Global Indonesia secured a three-year lease extension for the roughly 3.4-hectare Takalar site, increasing the total lease duration from two to five years, concluding in April 2031.
The extension fee amounts to IDR225,000,000 (approximately AUD17,900), paid upfront and inclusive of Indonesian income tax, covering the additional three-year term.
The site will host the company’s Seaweed Innovation and Application Centre, featuring onshore cultivation tanks, production facilities, and a functional laboratory.
Upon completion of the extended lease, the company has an option to pursue a further five-year extension or negotiate site purchase terms with the lessor.
Details of Takalar Site and Lease Agreement
The property consists of two adjacent parcels totaling approximately 33,719 square meters, situated about 40–50 kilometers south of Makassar. The extension period runs from April 2028 through April 2031. The Extension Agreement broadens permitted uses from solely seaweed cultivation and drying to include operations of the Seaweed Innovation and Application Centre. PT BPH Global Indonesia is responsible for utilities, maintenance, applicable taxes, and other operational expenses. The lease prohibits subletting or transfer without prior written approval from the lessor. Permanent improvements will revert to the lessor at lease end, while non-permanent assets remain the property of PT BPH Global Indonesia.
Development of Seaweed Innovation and Application Centre
The company plans to develop the Takalar site into its Seaweed Innovation and Application Centre. The facility will include onshore tanks for cultivating multiple seaweed species, existing in-ground aquaculture pools, production, drying, processing, and storage facilities, alongside a working laboratory dedicated to research and development. The Centre aims to support biomass production for environmental remediation, health and wellness beverage ingredients, biofertilizers, biostimulants, and other sustainable blue economy applications, pending technical validation, regulatory approvals, and commercialization outcomes.
Collaboration with ITBM and Milestone Framework
The site’s proximity to the Maritime Institute of Technology and Business Balik Diwa Makassar (ITBM) is expected to facilitate collaboration on cultivation, processing, research, training, and operational activities at the Centre. Ocean Sciences has established a program of construction, regulatory, and operational milestones to guide management and track performance, with plans to update the market as significant milestones are achieved. The company will continue providing shareholders with progress updates on the Centre’s development and commissioning in line with its continuous disclosure obligations.