Malaysian Company To Invest US$146 Million In Kazakhstan Oil And Gas Project
Nakamichi Corp Bhd is set to invest US$146 million in an oil and gas project in Kazakhstan.
Nakamichi, a Practice Note 17 company, said on Friday it would team up with Aktau Transit LLP and Aktau’s parent company Caspian Oil Project LLP (COP) to undertake the venture.
It signed an agreement with Aktau Transit and COP on Friday to jointly monitor and oversee the exploration, development and production activities of Aktau Transit’s two oilfields as part of its plan to regularise its financial position.
Nakamichi and its unit Nakamichi Oil and Gas Sdn Bhd (NOGSB) also inked a deal with Aktau Transit and COP appointing NOGSB as Aktau Transit’s agent to monitor and oversee the exploration, development and production activities.
Nakamichi will have to fork out US$60 million to Aktau Transit for upcoming and historical capital expenditures at the oilfields as well as US$86 million in refundable performance deposit, to be offset against a performance bonus payable by Nakamichi to Aktau Transit of US$3.40 per barrel of oil produced.
Nakamichi will receive 90 per cent of the distributed profit, which is defined as earnings before interest, taxation, depreciation and amortisation less Aktau Transit’s corporate income tax.
NOGSB will be paid an agent fee of 15 per cent of the total amount of the capital and operational expenditures paid by NOGSB on behalf of Aktau Transit or paid by Aktau Transit.
Aktau Transit has a 22-year concession for onshore O&G exploration and production in the republic until 2038.
Its only producing oilfield, Zhangurshy Oilfield, produces 71,400 barrels of oil in the first 11 months of last year.
The other oilfield, Tyubedzhik Oilfield, is still at the exploratory stage, but Aktau Transit has not carried out any exploration activities there since 2013 due to financial constraints.