Sumatec wins US$20 million contract to develop Kazakhstan oil and gas field

Malaysia’s Sumatec Resources Sdn Bhd has secured a US$20 million contract from China’s Talap Munai Service LLP to develop its Rakushechnoye oil and gas field in Kazakhstan.

Sumatec said in a filing with Bursa that the financing would cover eight well workovers on the upper Jurassic Reservoir; eight well workovers/side-tracks on the Triassic Reservoir; and drilling two new wells plus four new wells to be funded from oil revenue.

The financing would also be to upgrade the surface, production and storage facilities; and installation of gas injection facilities for pressure maintenance and offtake.

“Both Talap Munai and Sumatec agree that this contractor financing shall be repaid by way of cash or in kind that is oil/condensate barrels or shares of Sumatec or shares of Caspi Oil Gas LLP, the partner of Sumatec in Kazakhstan,” it said.

“The scope of work proposed by Talap Munai is anticipated to increase production by an additional 3,500 barrels of equivalent (boe) a day in January 2019, and thereafter targeted to increase to an additional 7,200 boe/day by August 2019,” it said.

Sumatec said the Rakushechnoye field is a large field with reserves, both in oil/condensate and gas, totalling around 139.4 million boe of proven and probable reserves.