ID :
202330
Fri, 08/19/2011 - 12:40
Auther :
Shortlink :
https://oananews.org//node/202330
The shortlink copeid
KEY WEST TO INVEST IN INDONESIAN OIL VENTURE
KUALA LUMPUR, Aug 19 (Bernama) -- Malaysia-based investment holding Key West Global Telecommunications Bhd will pump some US$650,000 into the joint venture with Indonesia's PT SA Petroleum to extract oil in Bojonegoro District, East Java.
Director Stephen Ng said US$350,000 would be invested in phase one of the project as part of the joint venture agreement signed in March while another US$300,000 in the near future.
"Since it's a brownfield, we actually need to spend some money on
the oil wells to increase production before we see gradual rise in revenue," he told Bernama after the company’s annual general meeting here on Friday.
He said the company had yet to determine the optimum level of production for the field which started production at an increasing rate since June.
"For the coming two months, we will be trying to get a stabilising point for the production level. It could be an exponential type of increase," said Ng.
The company also does not rule out venturing deeper into the oil and gas industry by increasing the number of oil wells from eight presently if there were opportunities to do so.
"We are definitely looking to expand this sector on a prudent basis. Being in an on-shore exploration is 10 times less risky compared to off-shore exploration," said Ng.
Commenting on the impact of fluctuating oil prices due to the crisis in Libya and rest of the Middle East, he said the impact would be minimal as the risks were largely absorbed by the off-takers.
"Even if the market price is fluctuating daily, we will still be having a safe benchmark as our selling price would still be the same thus allowing us to cover our operation fees," he said.
Meanwhile on the disposal of two subsidiaries, Keywest Communications Inc and Keywest Networks (Canada) Inc (KNI) which are involved in the telecommunication business and form the wholesale division of the company, he said the process would be completed by late September or early October, subject to approvals of Bursa Malaysia as well as shareholders through an extraordinary general meeting.
Upon completion of the disposal, the company would be focusing more on its oil and gas operations as part of its diversification plan announced in May.
-- BERNAMA
Director Stephen Ng said US$350,000 would be invested in phase one of the project as part of the joint venture agreement signed in March while another US$300,000 in the near future.
"Since it's a brownfield, we actually need to spend some money on
the oil wells to increase production before we see gradual rise in revenue," he told Bernama after the company’s annual general meeting here on Friday.
He said the company had yet to determine the optimum level of production for the field which started production at an increasing rate since June.
"For the coming two months, we will be trying to get a stabilising point for the production level. It could be an exponential type of increase," said Ng.
The company also does not rule out venturing deeper into the oil and gas industry by increasing the number of oil wells from eight presently if there were opportunities to do so.
"We are definitely looking to expand this sector on a prudent basis. Being in an on-shore exploration is 10 times less risky compared to off-shore exploration," said Ng.
Commenting on the impact of fluctuating oil prices due to the crisis in Libya and rest of the Middle East, he said the impact would be minimal as the risks were largely absorbed by the off-takers.
"Even if the market price is fluctuating daily, we will still be having a safe benchmark as our selling price would still be the same thus allowing us to cover our operation fees," he said.
Meanwhile on the disposal of two subsidiaries, Keywest Communications Inc and Keywest Networks (Canada) Inc (KNI) which are involved in the telecommunication business and form the wholesale division of the company, he said the process would be completed by late September or early October, subject to approvals of Bursa Malaysia as well as shareholders through an extraordinary general meeting.
Upon completion of the disposal, the company would be focusing more on its oil and gas operations as part of its diversification plan announced in May.
-- BERNAMA
