RM236.5mil O&G contracts awarded

  • Business
  • Thursday, 29 Jun 2017

PETALING JAYA: Sumatec Resources Bhd, which is in the midst of acquiring CaspiOilGas LLP (COG), has announced that the latter has awarded US$55mil (RM236.5mil) worth of jobs to Industrial Energy Alliance LLP (IEA) and Pricaspiyskoye Upravleniye Stroitelstva (PUS).

In a filing with Bursa Malaysia, the oil and gas outfit said COG has completed the open tendering exercise and awarded four contracts for the rejuvenation of 12 wells and the construction of six deep exploratory wells to IEA. The company has also awarded a contract to PUS for the reconstruction of a central processing facility and surface facilities.

“The company wishes to inform that COG’s general director Ruslan Keshubayev has written to inform Sumatec that COG has completed the open tendering exercise and has duly awarded the said contracts.

“The awarded contracts value is up to US$55mil. COG will fund the work programme on behalf of Sumatec and continue to fund it until Sumatec is able to raise its own funding,” said Sumatec.

To note, both IEA and PUS have commenced works with regard to the awarded contracts. Sumatec added that further announcements will be made, in the event of any material development related to the contracts.

Following the announcement on COG’s contract awards, the Main Market-listed Sumatec’s securities observed a one-hour trading halt from 2.30 pm to 3.30 pm.

Sumatec provides management and oversight of COG’s concession area at the Rakushechnoye oil and gas field in West Kazakhstan.

Sumatec also have plans to acquire Markmore Energy (Labuan) Ltd (MELL) from Markmore Sdn Bhd for US$205mil. MELL owns COG. Tan Sri Halim Saad owns 99.9% of Markmore.

Sumatec’s share price surged 10% to 5.5 sen at the close yesterday, with approximately 5.37 million shares done.

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