BANGKOK (Commodity Online) : Thailand’s PTT International Co, a wholly owned unit of the majority state-owned oil company PTT Plc, is looking to acquire coal assets in Indonesia to diversify its energy business overseas.

The company is in talks to buy 100% of the shares of a coal mine in Kalimantan, Borneo.

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The move would follow PTT's investment in the Sebuku Jambayan coal mine, where the company bought a production license from the local operator earlier this year. The group first diversified into the coal business late last year.

Once the negotiations are finalized, the coal mine would start production immediately.

This project is part of PTT's investment plan that aims to lift overseas investment to 50% of the total budget by 2014 from 20-30% at present.

The company's first Indonesian coal mine is projected to generate $500 million from the annual production of nine million tones this year. The output is expected to increase to 11-12 million tones next year and 20 million tones by 2014.

PTT spent $335 million buying an Australia-based miner, Straits Resources Co. The sub-bituminous grade coal is sold to power plants in China, India, Japan and Korea.

Last year, PTT acquired a palm oil plantation from the Kalimantan palm oil producer PT Mitra Aneka Rezeki through the wholly owned company PTT Green Energy Co (PTTGE).

The project covers 87,500 rai, of which 19,375 rai would be used for commercial palm oil production, 31,250 rai for plantations and the final 36,875 rai for future expansion.

PTT is keen on crude palm oil because of growing concerns over global warming and soaring fuel prices.

PTT is also investing in LNG and floating LNG (FLNG) abroad. PTT International will join with PTT Exploration and Production Plc to develop the Cash & Maple offshore project in Australia.

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