Basic Energy, Malaysian partner in talks for Indon oil venture

MANILA, Philippines -  Basic Energy Corp., said it is currently in discussions with Petrosolve Sdn Bhd of Malaysia for a project to manage and supervise oil wells in East Java, Indonesia.

In a disclosure to the Philippine Stock Exchange, Basic Energy said it is in talks with its Malaysian partner for the assignment of rights to PT Basic Energi Solusi to manage and supervise certain oil wells in Indonesia.

PT Basic Energi Solusi , a foreign investment company incorporated in Indonesia, is owned and controlled by Grandway Group Ltd., the joint venture company of Basic Energy and Petrosolve.

 â€œThe discussions involve the identification and selection of oil wells and the right to undertake some aspects of the management and operation of which shall be assigned by Petrosolve to PT Basic Energi Solusi,” Basic Energy said.

When the assignment is finally negotiated and implemented, PT Basic Energi Solusi shall be poised to undertake the agreed upon aspects of the operations of the selected oil wells, which shall involve the mobilization of its financial, technical and operations resources, derived from the joint venture, Basic Energy also said.

Last month, Indonesian authorities approved the investment of the Grandway Group in PT Basic Energi Solusi, to be used for projects involving the management and supervision of oil wells in Indonesia.

Basic Energy and Petrosolve announced their partnership in February, saying this would allow both companies to expand their respective operations globally.

The partnership could be for projects within and outside the Philippines, Basic Energy president Oscar de Venecia 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.