Sumatec: CaspiOilGas awards five contracts worth US$55m

PETALING JAYA: Sumatec Resources Bhd announced yesterday that CaspiOilGas LLP (COG) has awarded five contracts worth up to US$55 million (RM235.8 million) in Kazakhstan.

Sumatec told Bursa Malaysia that COG had completed the open tendering exercise and had awarded four contracts to Industrial Energy Alliance LLP for the repairing/rejuvenation of 12 wells and the construction of six deep exploratory/appraisal wells.

COG also awarded a contract to Pricaspiyskoye Upravleniye Stroitelstva for the reconstruction of a central processing facility and surface facilities. Construction works for the contracts have started.

COG will fund the work programme on behalf of Sumatec and it will continue until Sumatec is able to raise its own funds. Its cash and cash equivalents stood at RM252,000 as at March 31, 2017.

Sumatec disclosed at its AGM earlier this month that it was planning to abort the proposed acquisition of COG as it shifted focus towards its gas utilisation plan, which includes the establishment of a liquefied petroleum gas plant in Kazakhstan.

COG is a unit of Markmore Energy (Labuan) Ltd and is the concession owner of the Rakushechnoye oil and gas field in West Kazakhstan.

Under a joint investment agreement signed in March 2012, Sumatec is entitled to 100% of the profit for the first two million barrels and subsequently profit is shared on a 50:50 basis between Sumatec and COG.