Sumatec to buy Kazakh oil field’s concession owner for RM1.55bil

Interview Sumatec Resources' substantial shareholder, Tan Sri Halim Saad.-Art Chen/ The Star. 20 Feb 2017. reporter : SHARIDAN

KUALA LUMPUR: Sumatec Resources Bhd has entered into head of agreement with Markmore Sdn Bhd for the purpose of recording their understanding and intention in respect of the proposed purchase of entire equity interest in Markmore Energy (Labuan) Ltd for RM1.55bil.

In a filing with Bursa Malaysia, Sumatec said Markmore Energy, through it wholly-owned subsidiary, Markmore Central Asia B.V, holds the entire participatory in CaspiOilGas LLP (COG), which in turn the concession owner and operator of the Rakushechnoye oil and gas field in Kazakhstan.

Under a joint investment agreement entered between Sumatec, Markmore Energy and COG in 2012, Sumatec had been appointed to carry out all operations relating to oil production from Rakushechnoye, entitling the group the entire profits for the first two million barrels of production and thereafter 50%.

“The proposed acquisition is expected to enable Sumatec to effectively own the entire oil and gas reserves at Rakushechnoye and is expected to enhance the effectiveness and efficiency of its operations.

“The proposed acquisition is also a step in increasing the hydrocarbon reserves for Sumatec to arrest its natural production decline, thereby ensuring the company’s continuous growth,” it said. - Bernama