Business World Online
Posted on June 18, 2013 10:17:35 PM
HONG KONG-BASED Grandway Group Ltd., a unit of Basic Energy Corp., has moved a step closer to the establishment of a new company in Jakarta after the firm secured an endorsement from the Indonesian government, the listed firm said in a disclosure yesterday.
Basic Energy said that Grandway Group “recently received the endorsement of the Ministry of Law and Human Rights on the Deed of Establishment of PT Basic Energi Solusi, the foreign investment company of the joint venture in Indonesia.”
It added that the new company, which will serve as the investment arm of the joint venture in Indonesia, is capitalized at 8.5 billion rupiah.
Last month, the company secured the approval from the Badan Koordinasi Penanaman Modal (BKPM) of Indonesia for the registration of PT Energi Solusi.
“As approved by the... BKPM, it (PT Energi Solusi) is authorized to provide consultancy, management and supervision services in the management of oil wells,” the disclosure read.
It added that the company will undertake operations of oil wells “using modern and chemical enhanced oil recovery technology to unlock oil resources and thereby increase oil production of these oil wells.”
Asked on the significance of this new development, Basic Energy President and Chief Executive Officer Oscar L. de Venecia, Jr. said in a text message yesterday: “We are disclosing that we are in the process of completing all Indonesian requirements for the incorporation of PT Basic Energi Solusi.”
“I believe there are just a couple of minor requirements to be completed,” he added, without specifying the requirements.
Basic Energy had said last month that PT Basic Energi “will be supported by the technical and operations experience of Basic Energy in the operation and management of oil wells and a chemical technology patent owned by Petrosolve for enhanced oil recovery and increased oil production.”
According to its Web site, Basic Energy and its subsidiary, Southwest Resources, Inc., are involved in various oil exploration activities.
It currently holds minority stakes in service contract (SC) 47 and SC 53, located offshore and onshore Mindoro province, respectively, as well as SC 41 in Sulu Sea.
The company, through its subsidiaries, is also involved in the production of ethanol and other biofuels; development of geothermal renewable energy resources; and development and production of farm products.
Basic Energy recorded a P5.860-million net loss in the first quarter compared to the P31.156-million net income in the same period last year.
This was mainly due to the absence of one-off gain realized last year from the sale of the company’s unit, Basic Petroleum and Minerals, Inc.
The shares of Basic Energy were last traded yesterday at 25 centavos, unchanged from Monday’s closing price. -- Claire-Ann Marie C. Feliciano source
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