PETALING JAYA: Practice Note 17 (PN 17) company Sumatec Resources Bhd’s business partner CaspiOilGas LLP (COG) has successfully defended against claims from creditors at the Supreme Court of the Republic of Kazakhstan.
In a filing with Bursa Malaysia, Sumatec said it received a letter from COG informing it of the Supreme Court’s decision in favour of COG to clear COG’s disputes with a group of creditors.
COG general director Ilyas Madimov said that the Supreme Court’s decision, which denied all legal redress sought by the group of creditors against COG, is final and binding, without further avenue for appeal as it is issued by the highest competent court of the country.
“This favourable court’s decision has paved the way forward for COG to soldier on with bigger strikes for the development of Rakushechnoye Oil & Gas field,” he said in the letter to Sumatec.
Following the court’s decision, Madimov said COG can now move forward to focus on its oil production and finalise the full commercial Field Development Plan (FDP) for Rakushechnoye, including the development of its condensate-rich gas resources.
Madimov said the court’s decision reinforces the stand taken by COG and its ultimate controlling shareholder Tan Sri Halim Saad, not to negotiate or give in to the alleged false debt claims in the creditors’ dispute.
Halim was also a substantial shareholder in Sumatec prior to disposing of 197.3 million shares in January this year.
COG is currently working on well workovers programme which involves eight wells, with a target of resuming production to around 921 barrels per day by end-2019 and further increase to around 1,600 barrels per day by mid-2020.
The well workovers programme is being carried out by COG on its own funding initiative.
“This is done in the spirit and mechanism of the joint investment agreement (JIA), whereby either party can advance money to fund the petroleum operation at the Rakushechnoye field, in this case, COG is funding the JIA on behalf of Sumatec,” said Madimov.
On the full field development and gas utilisation plan for Rakushechnoye, he said COG is in advance stage of developing the investment plan for the proposed gas condensate processing plant (GPU) with China parties.
The estimated investment for Phase 1 is around US$200 million (RM826 million). The GPU plan is aimed at producing LPG and increase oil/condensate production.
