Sarawak tycoon's firm to increase oil production

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  • Wednesday, 02 Apr 2014

KUCHING: Singapore-listed RH Petrogas Ltd, which is majority owned by Sarawak tycoon Tan Sri Tiong Hiew King and family, aims to increase its current production of 4,100 barrels of oil equivalent per day.

The group currently has five oil and gas assets, including an 80% participating interest in a production sharing contract (PSC) with Petroliam Nasional Bhd (Petronas) for Block SK331 located onshore Sarawak.

The PSC, which is RH Petrogas group first oil and gas asset in Malaysia and covering 11,600m², would serve to expand its footprint in the Asia Pacific region, said Subur Tiasa Holdings Bhd in reply to queries from Bursa Malaysia in relation to its (Subur) acquisition of additional shares in RH Petrogas last week.

Bursa had, among others, asked Subur Tiasa to briefly elaborate on RH Petrogas’ prospects.

RH Petrogas is involved in exploration, development and production of oil and gas deposits, and the group has production, development and exploration blocks in Malaysia, Indonesia and China.

Block SK331 is an extension of the Balingian Basin in Mukah Division, which contains several oil and gas fields in the offshore area.

According to Subur Tiasa, RH Petrogas group remains optimistic over this asset as past exploration efforts had established the presence of an active petroleum system in the region.

“This is an exploration asset and RH Petrogas group is committed to a three-year work program involving seismic reprocessing and new seismic acquisition, exploration drilling and specialised geological and geophysical studies.”

Subur Tiasa paid S$4.2mil (RM10.95mil) for an additional 7 million shares or 0.95% stake in RH Petrogas from RH Capital Ltd shareholders in a related party transaction.

On Dec 24 last year, the Sibu-based timber-based company acquired 10.6 million shares in the oil and gas outfit for S$6.47mil (RM16.7mil).

RH Capital is equally owned by Hiew King and son Tiong Chiong Ong. Hiew King is a major shareholder of Subur Tiasa, which is involved in logging activities and manufacturing of timber products.

RH Petrogas’ recent exploration successes were gas and condensate discovery in North Klalin (Indonesia) and gas discovery in Fuyu (China), both in 2011 as well as oil discovering in South East Walio last year, said Subur Tiasa.

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