REACH ENERGY BOOST FOR MANGYSTAU

Firm aims to attract up to US$1b worth of Malaysian investments into region

REACH Energy Bhd is helping to get Malaysian companies to invest US$500 million to US$1 billion (RM2.1 billion to RM4.3 billion) in Kazakhstan over three years.

The company yesterday signed a non-binding deal with the Akimat (regional government) of Mangystau in southwest Kazakhstan.

Reach Energy will assist in attracting Malaysian companies to invest in priority industries in Mangystau such as oil and gas (O&G), infrastructure, construction, electricity and water supply as well as tourism.

The company will also support and promote gas utilisation development in Mangystau. This includes the construction of a methanol plant, liquefied petroleum gas facilities, a power generation plant and other gas utilisation facilities.

The memorandum of understanding (MoU) was signed by Reach Energy executive director and chief executive officer Shahul Hamid Mohd Ismail and Mangystau regional government head Yeraly Togzhanov during the Malaysia-Kazakhstan busi- ness forum, here, yesterday.

“This region has great potential for Malaysian investments and since Reach Energy is here, we want to work closely with the regional administration to attract more Malaysian investors to the region,” Shahul told NST Business.

Reach Energy has 54 O&G wells in Mangsystau, with plans to increase them to 88 by 2026. It is the operator of the Emir-Oil concession block in the region.

Earlier at a press conference, Shahul said the field is slightly bigger than Singapore.

“There are lots of opportunities and it’s only partially explored... the oil is of very high quality,” he added.

Deputy International Trade and Industry Minister Datuk Ahmad Maslan said the MoU is a milestone that serves Malaysia and Kazakhstan’s common interests.

“With more than 90 Malaysian government and private organisations showcasing their products and services at Expo 2017 Astana, we foresee more deals and MoUs being signed,” he added.