Wednesday, April 20, 2016

Trans-Asia to invest in oil assets overseas



posted April 13, 2016 at 11:45 pm by  Alena Mae S. Flores

Trans-Asia Petroleum Corp., the oil and gas unit of Trans-Asia Oil and Energy Development Corp., is interested in oil and gas explorations in Australia and Indonesia.
“Recent developments affecting global prices of oil have emboldened your company to look into overseas investment opportunities for possible partnerships and exploration ventures,” a Trans-Asia Petroleum official said.
The company has engaged the services of an Australian consulting group to scan upstream investment opportunities in the region. It did not pursue a shortlisted farm-in deal in the northwest shelf of Australia.
Trans-Asia Petroleum, however, is still looking at another opportunity in west Australia and started evaluating an asset in Sumatra, Indonesia.
“We engaged a consultant, we shortlisted assets and this is what we came up with. There were a lot of criteria. It’s either producing or near production phase because we want to have recurring income. Also included is the country risk, fiscal regime, other economics,”  Trans-Asia Petroleum executive vice president Raymundo Reyes Jr.
The company is acquiring interests in selected petroleum service contracts covering areas usually in the exploration stage. The company usually takes a minority interest due to the high risk and capital extensive nature of the business.
“We are not looking at exploration assets, it should be in development or production stage. Exploration takes time, you have to drill and it may still be negative. If there’s discovery already, in two to three years, there will be production,” Reyes said.
He said the company had started evaluating the assets and that a farm-in agreement might be signed within the year.
“The significant drop in global oil prices has tapered exploration activity, with site specific projects being reviewed by your company on the basis of prospectivity and economic potential,” Tapet said.
Reyes said oil prices would not likely hit $100 per barrel anytime soon due to a supply glut. “If we hit $50 to $60 this year, we’re lucky,” Reyes said.
He said the company saw an opportunity in the prevailing low oil price regime.
Trans-Asia Petroleum is actively scouting for possible acquisitions amid depressed market values.
“Such assets could generate near-term recurring revenues,” it said.
The company, which has stakes in several service contracts, suffered a net loss of P10.69 million in 2015, lower than the loss of P13.569 million it incurred in 2014.
Trans-Asia Petroleum has stakes service contract 6 Block A (offshore northwest Palawan), SC 6 Block B (offshore northwest Palawan), SC 51 (East Visayas), SC 55 (deepwater West Palawan), SC 69 (Central Visayas) and SC 50 (North Palawan).

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