Reach Energy, Mangystau ink MoU to enhance M'sia- Kazakhstan trade ties

ASTANA: Reach Energy Bhd, a listed Malaysian oil and gas exploration production company, on Wednesday inked a Memorandum of Understanding (MoU) with Akimat, the regional government of Mangystau, southwestern region of Kazakhstan.
Under the MoU, Reach Energy will assist in attracting Malaysian companies to invest in priority industries in the region such as oil and gas, infrastructure, construction, electricity and water supply, as well as tourism projects, targeting an investment of US$500 million to US$1 billion over three years.
The pact was signed by Reach Energy Executive Director/CEO, Shahul Hamid Mohd Ismail, while Akimat was represented by its Head of Regional Government, Yeraly Togzhanob, at the Malaysia-Kazakhstan Business Forum held in conjunction with Expo 2017 here.
It was witnessed by International Trade and Industry Deputy Minister Datuk Ahmad Maslan, Energy, Green Technology and Water Acting Deputy Minister Datuk Seri S.K. Devamany and Malaysian Ambassador to Kazakhstan Syed Mohamad Bakri Syed Abdul Rahman.
The MoU will see both parties cooperating in attracting and sharing information with Malaysian companies on the advantages of investing in the Mangystau region.
Shahul Hamid said Reach Energy currently has 54 oil and gas wells in the Mangsystau region with plans to increase this to 88 by 2026.
"This field (in Mangystau) itself is 850 square kilometres in size, that's slightly bigger than Singapore. Lots of opportunities are there and it's only partially explored in terms of oil and gas….the oil is of very high quality," he said.
Meanwhile, Devamany said to date Reach Energy had invested some US$200 million in the oil and gas industry in Kazakhstan.
"This cooperation between Malaysia and Kazakhstan is profound and we want to deepen this economic collaboration further," he said.
In the meantime, Ahmad hoped more companies from Kazakhstan would invest in Malaysia and subsequently position the country as a hub to penetrate the ASEAN and Asian market.
"To date, eight Malaysian companies have invested in Kazakhstan and certainly these investments have generated wealth for the people, whether in Kazakstan or Malaysia, including providing jobs," he said. – Bernama