Sumatec to construct plant on Kazakhstan O&G field

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KUALA LUMPUR: Sumatec Resources Bhd has accepted an offer letter for the right to construct a condensate extractions plant for the Rakushechnoye oil and gas field in Kazakhstan.

The offer was extended by Markmore Energy (Labuan) Ltd, which is the ultimate holding company of the entire participatory interest in CaspiOilGas LLP, the concession owner and operator of the oil and gas field that supplies 80 million standard cubic feet per day of natural gas.

Sumatec will pay Markmore Energy a sum of US$155mil as entry cost in the form of cash, US$100mil in new Sumatec shares and redeemable convertible preference shares worth US$25mil.

It also intends to fund the construction of the US$120mil plant, scheduled to be completed within 18 months of the signing of the gas supply agreement, via an equity fundraising exercise and bank borrowings.

Sumatec's share of the final product resulting from the CEP shall be 332 MT of LPG and 5,000 barrels of condensate per day. 

Markmore Energy belongs to Tan Sri Halim Saad, the major stakeholder in Sumatec, while Abu Talib Abdul Rahman is both managing director of Sumatec and director of Markmore.