Sumatec loses Kazakhstan oil contract

Sumatec in a filing with Bursa Malaysia yesterday, said wholly-owned Sumatec Oil and Gas LLP (SOG) had on Oct 7 received a notice from CaspiOilGas LLP (COG) to terminate the joint investment agreement (JIA) to develop the Rakushechnoye oil and gas field.

PETALING JAYA: Financially distressed Sumatec Bhd said its contract to develop an oil and gas field in Kazakhstan will be terminated effective Oct 17.

The company, in a filing with Bursa Malaysia yesterday, said wholly-owned Sumatec Oil and Gas LLP (SOG) had on Oct 7 received a notice from CaspiOilGas LLP (COG) to terminate the joint investment agreement (JIA) to develop the Rakushechnoye oil and gas field.

“In the termination notice, COG has highlighted the constraints faced under the current financial and legal predicaments of Sumatec which impacted SOG’s ability to comply with its obligations to carry out appropriate investment/work programs and provide necessary funding for the petroleum operation under the JIA, ” it said.