Highlight Sumatec says Rakuschechnoye O&G field to bring in RM144m fee income over 3 yrs from 2014

Business & Markets 2013
Written by Jeffrey Tan of theedgemalaysia.com
Tuesday, 10 December 2013 19:05
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KUALA LUMPUR (Dec 10): Sumatec Resources Bhd announced that it will
develop and deliver the gas development plan for the Rakuschechnoye oil and
gas (O&G) field that will meet the minimum requirements of 120 Million
Standard Cubic Feet of Gas (MMSCF) per day to an off-taker.
The supply of gas to the off taker is expected to start early 2017.
Speaking at the special press briefing, Sumatec’s CEO Chris Dalton said the
firm has today entered into an agreement for the gas development and
production of the said O&G field, with Markmore Energy (Labuan) Limited
(MELL).
MELL is the owner of the concession and sub surface user rights for the
Rakuschechnoye O&G field through its 100% subsidiary CaspiOilGas LLP
(COG).
“Sumatec will charge MELL a fee of US$45,000,000 (RM144,000,000) over three years from 2014 to 2017,” said Dalton.
“Once supply of gas commences to the off taker, Sumatec will charge an operator fee of USD0.75 per thousand standard cubic feet
(MSCF) supplied net of cost.”
Dalton remarked: “At a daily rate of 120MMSCF, that equates to US$90,000 (RM289,000) per day or US$32,850,000 (RM105,380,000)
per annum.”
He said all capital expenditure and operational costs in the field are cost recoverable from MELL under the same terms as per the Joint
Investment Agreement signed in March last year between Sumatec, MELL and COG.
Dalton pointed out from the fee of US$45,000,000 (RM144,000,000), Sumatec would gain an estimated profit margin of 30%.
Concerning Sumatec’s bottom line, he said: “We are confident of a turnaround next year and expect to gain profit in the first quarter of next
year.”
“We are optimistic of hitting our profit target of RM69 million by next financial year end. This, however, does not take into account of the
new gas development and production agreement.”
For the nine months ending Sept 30, 2013, the firm had incurred losses of RM15.3 million, with the three quarters reporting losses (Q1:
RM5.2 million, Q2: RM3.9 million and Q3 6.1 million).
Additionally, he said Sumatec within its portfolio, would consider shallow water offshore O&G fields that are matured and have proven
track records. These fields, he specified, would have a water depth ranging from 10m to 20m.
He added that the firm is scouting for new O&G fields that are ‘closer to home’, citing Indonesia and other neighbouring countries, but
stopped short of giving specifics.

+1 for news

good news suma

Cals wrote:+1 for news

good news suma

u ada beli ? ...   

Cals wrote:

hlk wrote:

Cals wrote:+1 for news

good news suma

u ada beli ? ...   

phoenix zhai mau jual kepada kita lol