27/04/2008 (The Bangkok Post) - State-run oil giant PTT Pcl has taken over a major palm oil plantation in Kalimantan, the Indonesian province on Borneo island, PTT Prasert Bunsumpun said on Sunday.

In a three-country deal, Singapore-based PTT Green Energy Co Ltd (PTTGE), a PTT subsidiary, bought 95 per cent of PT Az Zhara of Indonesia for US$22.27 million, or about 708 million baht.

The deal was brokered by Sabra Brothers, a PTTGE subsidiary.

PT Az Zhara grow oil palm on 40,500 hectares (roughly 253,000 rai) on Kalimantan. The company has current plans to construct a plant to produce crude palm oil at the plantation site by 2012.

PTT plans to sell the palm oil both locally and for export, Mr Prasert said. He did not announce any plans to export the oil to Thailand, where palm oil is used extensively in production of bio-diesel.