Basic Energy, Malaysian firm tie up for oil search venture

MANILA, Philippines - Basic Energy Corp. and Malaysia’s Petrosolve Sdn Bhd have formed a joint venture company, Grandway Group Ltd., for the two firms’ oil exploration business.

In a disclosure to the Philippine Stock Exchange, Basic Energy said it would own 70 percent of the Hong Kong-based joint venture while 30 percent would be owned by Petrosolve.

“The joint venture company shall operate as the corporate vehicle for Basic and Petrosolve to enter into business relationships and transactions with respect to the management and operation of oil wells,” Basic Energy said

The two companies announced their partnership in February, saying this move would allow both companies to expand their respective operations globally.

Basic Energy president Oscar de Venecia has said the partnership could be for projects outside the Philippines.

“We partnered with Petrosolve to look for projects. We are still looking at potential projects, but it’s not necessarily in the Philippines. It could be outside,” he said.

There are also no definite projects yet but De Venecia said there could be a number of exploration projects.

The joint venture will bring about a strategic alliance between Basic Energy and Petrosolve, with each party contributing their respective network, expertise and experience in the field of oil and gas exploration, development and production, and thus enable the parties to expand their respective operations globally, Basic Energy also said.

Petrosolve is a company registered in Malaysia and is engaged in the business of oil field services including application of chemicals for increased oil production and the development of oil and gas fields and wells.

Basic Energy is a listed firm presently engaged in energy development, particularly oil exploration. It also has investments in petroleum projects include the exploration and development of contract areas situated in offshore and onshore Mindoro.