Oxala Energi (PIPA) Targets Expansion into Gas Processing Business, Prepares Acquisition Steps
PT Oxala Energi International Tbk (PIPA), with the support of PT Morris Capital Indonesia (MCI) as the controlling shareholder, is finalising a strategic corporate action in the form of acquiring a company engaged in the trading of engineering and construction equipment that has also expanded into the oil and gas processing business.
This step is part of the company’s sustainable business development strategy while opening opportunities for new sources of growth for the company.
In a letter from MCI to the company’s Board of Commissioners dated 18 August 2026, MCI affirmed its commitment to supporting PIPA’s business development, including through the exploration and execution of corporate actions expected to provide added value for PIPA and all shareholders.
The expansion is supported by the acquisition of contracts worth more than US$100 million. Based on information in the MCI documents, the gas processing activities are also carried out under a contract with one of the state-owned enterprises (BUMN).
The financial prospects of the target company are also an important aspect of the transaction plan. Based on currently available information and projections, the target company’s total assets as of 31 December 2025 were recorded at approximately Rp476 billion and are projected to increase to approximately Rp920 billion by 31 December 2026. The target company also has revenue potential of approximately Rp250 billion per year, with a projected EBITDA margin of around 60%.
Currently, discussions and finalisation of transaction documents with relevant parties are still ongoing. Taking into account the progress of the process, the conditional share purchase agreement related to the transaction plan is targeted to be completed in August 2026.
Considering the completion of all necessary processes and requirements, the company is targeting the holding of an Extraordinary General Meeting of Shareholders (RUPSLB) related to the transaction plan no later than March 2027.
“If the acquisition plan can be realised, the entry into gas processing activities is expected to become one of the new sources of growth for PIPA. The business is expected to contribute positively to increasing revenue, strengthening operational performance, and supporting the company’s financial performance in the future,” said management.