Sumatec receives offer letter to construct plant in Kazakhstan oil and gas field

Malaysian energy firm Sumatec Resources Berhad recently announced that it has received an offer letter from Markmore Energy (Labuan) Ltd to build a condensate extractions plant for the Rakushechnoye oil and gas field in Kazakhstan.
Markmore Energy (Labuan) Ltd 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$155million as entry cost in the form of cash, US$100 million in new Sumatec shares and redeemable convertible preference shares worth US$25million.

It also intends to fund the construction of the US$120 million 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.

(EOG)

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