FRIDAY, March 29, 2024
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Sumatec to expand oil and gas facilities in Kazakhstan 

Sumatec to expand oil and gas facilities in Kazakhstan 

MALAYSIA’S SUMATEC Resources is ready to embark on a three-year development plan to ramp up the production of its Rakushechnoye oil and gas field in Kazakhstan towards optimal production of about 2,000 barrels of crude oil a day.

“We are ready to start developing the facilities to optimally extract the hydrocarbon at the Rakushe-chnoye oil and gas field because the oil price has somewhat stabilised and it’s feasible now for us to invest,” general manager (geoscience) Felix Chang told StarBiz recently.
This week the company had proposed a fund-raising exercise to finance the development of oil and gas facilities in the area.
Sumatec extracts about 500 barrels of oil per day from the Rakushechnoye oil and gas field.
According to Chang, apart from crude oil, the area is also poised to produce condensate, liquefied petroleum gas (LPG) and gas.
The oil and gas reserves in the area are estimated to be at 32.8 million barrels of oil (MMbo) and the gas reserve is estimated at 89.3 million barrels of oil equivalent (mmboe).
“We have to drill deeper to get to the river of oil and gas reserves. But first, we have to build a gas processing plant to cater for the production of gas that comes together with the oil,” he said.
“We expect to gradually start ramping up production in the middle of next year once all the facilities are in place.”
Sumatec’s portion of the hydrocarbon will be based on a production-sharing contract with its two partners.
Sumatec on February 17 had entered into a framework agreement with Ken Makmur Holdings and Markmur Energy (Labuan) Ltd (MELL), which is the concession holder of the Rakushechnoye oil and gas field, for the production of LPG and condensate from the 100 million standard cubic per day of the natural gas supplied from the area.
Chang said that based on a ballpark figure, the Rakushechnoye oil and gas field is able to generate revenue of US$377.6 million (Bt13.2 billion) per year.
On Monday, Sumatec proposed to undertake a private placement of up to one billion new shares to an independent third party to be identified, with estimated proceeds of RM 80 million (Bt628.9 million) and issuance of up to 800 million shares as payment to contractors for development and production services to be provided at the Rakushechnoye oil and gas field.
It has also proposed renounceable rights issue of up to 3.22 billion of Sumatec shares with up to 3.22 billion detachable warrants at an indicative 10 sen per rights share on the basis of one rights share for every two Sumatec shares.
Under maximum scenario, the rights issue is expected to raise gross proceeds of RM 322.6 million.
 

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