Sumatec to build plant in Kazakhstan

Sumatec Resources Bhd has been granted an award from Markmore Energy (Labuan) Ltd worth US$120mil (RM480mil) to construct a condensate extractions plant (CEP) for the Rakushechnoye oil and gas (O&G) field in Kazakhstan.

In a filing with Bursa Malaysia yesterday, the O&G firm said intended to fund the construction of the plant, scheduled to be completed within 18 months of the signing of the gas supply agreement, via an equity fundraising exercise and bank borrowings.

Markmore Energy is the ultimate holding company of the entire participatory interest in CaspiOilGas LLP (COG), the concession owner and operator of the O&G field that supplies 80 million standard cubic feet per day of natural gas.

Sumatec will pay Markmore Energy US$155mil (RM600mil) as entry cost in the form of cash, US$100mil (RM380mil) in new Sumatec shares and redeemable convertible preference shares worth US$25mil (RM97mil).

“The Rakushechnoye O&G field is located in Karakiyansky region of the Mangistau Oblast. The nearest township is Kuryk and is located 40km to the north, the capital city of Aktau of the Mangistau Oblast is 105 kilometres to the north,” said Sumatec.

It said field produces light crude oil with density of around 0.8 grams per cu cm or American Petroleum Institute gravity ranging between 45.4 to 47.6.

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.

In January, Sumatec and COG inked a pre-sale gas agreement to sell gas to NIPIneftegas Consortium in Kazakhstan over 15 years.

The deal will see the NIPI-led consortium converting the feed gas into petroleum products through a proprietary gas to liquid (GTL) technology.

The proposed capital expenditure for the gas utilisation plan, which is tied to the gas development production agreement between Sumatec and COG, will start at US$60mil (RM234mil).

Source: The Star