Reach Energy Aims To Conclude O&G Field Acquisition In Kazakhstan By Year-End

From Farhana Poniman ASTANA (Kazakhstan), May 25 (Bernama) -- Reach Energy Bhd aims to conclude its acquisition of onshore oil and gas (O&G)-producing fields in Kazakhstan by year-end. Managing Director/Chief Executive Officer Shahul Hamid Mohd Ismail said the company was expected to hold an extraordinary general meeting in August or September to obtain shareholders’ approval. "We hope to convince the shareholders that this acquisition will open more doors for us in Kazakshtan, but we do understand that they are anxious about the acquisition because of the current low oil prices. "I have worked in the industry long enough to see oil prices fall six times to as low as US$10 per barrel at one time and yet we were still making money," he told reporters on the sidelines of the Astana Economic Forum (AEF) here on Tuesday. Saying that the company submitted the qualifying acquisition to the Securities Commission of Malaysia on Tuesday, Shahul Hamid added the group was confident that the oil price would recover gradually. On March 5, Reach Energy announced to Bursa Malaysia (Malaysia's Stock Exchange) its proposal to acquire a 60 per cent stake in Palaeontol BV, which owns the onshore O&G field, Emir-Oil LLP, in Kazakhstan for US$154.9 million (about RM638.2 million), from Hong Kong-based MIE Holdings Corp. Emir-Oil owns production contracts of four producing oil blocks (Aksaz, Dolinnoe, Kariman and Emir), as well as, an oil and gas exploration contract in Kazakhstan that extends over 850.3 sq km. Shahul Hamid said the oilfields would present good returns to the company and shareholders considering they were still in the early phase of their life cycle. On the ease of doing business in Kazakhstan, he said the Kazakh government provided a good ecosystem for foreign companies and it was eager to welcome more Malaysian companies into the country. "Kazakhstan is ready to take off. Malaysian companies, especially public listed companies, should look into the massive opportunities here. "Besides oil and gas, we see huge potential for investments in the services, infrastructure and education sectors," he added. The two-day AEF, beginning Wednesday, themed, 'New Economic Reality: Diversification, Innovations and Economics of Knowledge', serves as a platform to discuss progress and identify steps to ensure Kazakhstan achieves high economic growth. -- BERNAMA