Sumatec signs MOA with CNPC-Liaohe, accepts offer from Talap Munai
KUALA LUMPUR: Sumatec Resources Bhd (SRB) has signed a memorandum of agreement (MOA) with Liaohe Oilfield of CNPC, a subsidiary of China National Petroleum Corp (CNPCLiaohe) on April 23, 2018.
In a filing to Bursa Malaysia, it said CNPC- Liaohe would provide a full technical service for a project, including subsurface, drilling and production engineering works for the exploration and development of the Rakushechnoye oil and gas field, as per the MOA.
“Prior to this, as a show of commitment on the project, CNPC- Liaohe has completed around 5,000 man- hours of reviewing and studying the data of the Rakushechnoye field and carried out studies on several wells,” it said.
It said CNPC- Liaohe has a crude oil production of over 12 million metric tonnes per year and has around 7,000 research and design engineers from geology, reservoir engineering, drilling and production engineering and oil and gas processing.
CNPC, the holding company of CNPC-Liaohe, is the world's third-largest oil company based in China and has integrated business portfolios of both an oil company and an oilfield service provider, with operations covering the entire oil and gas industry value chain.
Meanwhile, in a separate filing, SRB said it had accepted an offer from Talap Munai Service LLP, a major contractor from China who operates in Kazakhstan and China, to develop and finance up to US$20 million (contractor financing) in the development of Rakushechnoye oil and gas field.
It said the contractor financing would cover eight well workovers on Upper Jurassic Reservoir; eight well workovers/side-tracks on Triassic Reservoir; drilling of two new wells plus an additional four new wells to be funded from oil revenue; upgrading of surface, production and storage facilities; and installation of gas injection facilities for pressure maintenance and offtake.
The Rakushechnoye field is a large field with reserves, both in oil/condensate and gas, totalling around 139.4 million barrels of oil equivalent (MMboe) of proven and probable (2P) reserves.
“Talap Munai and SRB agree that this contractor financing shall be repaid by way of cash or in kind that is oil/condensate barrels or shares of SRB or shares of COG (CaspiOilGas LLP the partner of SRB in Kazakhstan),” it said.
The work proposed by Talap Munai is anticipated to increase production by an additional 3,500 boe per day in January 2019, and thereafter targeted to increase to an additional 7,200 boe per day by August 2019.
Talap Munai has a strong presence in Kazakhstan and working collaboration with CNPC-Liaohe as well as a long cooperation arrangement with Sinopec Kazakhstan International Petroleum Service LLP for the development of oilfields in Kazakhstan since 2009. — Bernama