Wednesday, June 21, 2017

Basic Energy sets due dilligence on offshore investment plans

Published June 7, 2017, 10:01 PM By Myrna M. Velasco

De Venecia-led Basic Energy Corporation is scheduling ‘due diligence process’ to an investment tie-up with Hongkong firm Solmax Power Limited for potential solar venture in Japan.
Basic Energy Senior Vice President Anthony L. Cuaycong said they will be undertaking “due diligence for Solmax and its solar projects in Japan.”
The basic requirement to this, however, would be for Basic Energy to post ‘refundable earnest deposit’, according to the company executive.
The firm’s board of directors approved on Wednesday (May 31) the placement of ‘refundable deposit” for the targeted Solmax venture.
Cuaycong has not divulged the amount and the extent of equity or business interest they have been looking at with Solmax, but he expounded that after taking a look at the Hong Kong firm and its projects, “if we are satisfied, our deposit will be turned into equity.”
Basic Energy had been on the lookout for various opportunities in renewable energy investments – and had generally been seeking tie-ups with some foreign players.
Additionally, the company noted it will be renegotiating its business deal with Indonesian partner PT Ekamaro for petroleum concession in Cepu block along East Java.
Basically, the firm noted that it sought “extension of the cooperation between PT BES, a subsidiary of Basic Energy, for its Cepu, Indonesia project with PT Ekamaro until October 31, 2020.”
Cuaycong explained that the deal already has an existing agreement, but it will be expiring around October this year. Hence, there is a need to pursue some renegotiation process on its extension.
Basic Energy has been pursuing various oil exploration ventures in Indonesia and the business tie-up with PT Ekamaro had just been one of these undertakings.

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