KUALA LUMPUR: Tycoon Tan Sri Halim Saad is close to securing an oil concession in Kazakhstan, according to merchant bankers who helped structure the deal.
Business Times was told that this time the project will be injected directly into Sumatec Resources Bhd, its oil and gas (O&G) outfit.
“An announcement on the matter should be out in days. It is a mature oil field, mostly onshore with reserves of up to 40 million barrels of oil,” a merchant banker said yesterday.
Sumatec is in the process of closing the books for its rights issue, which has raised more than RM400 million for its maiden job in Kazakhstan.
It is understood that Sumatec plans to tap the Islamic debt market to the tune of US$100 million (RM329 million) to finance the new venture.
Halim had craftily used an earlier O&G concession he owns in Kazakhstan to get a quarter of financially challenged Sumatec Resources.
A year ago, when he was first linked to Sumatec, many had privately dismissed the former leader of corporate Malaysia as past his sell date.
The Halim-Sumatec tie, which eventually led to the restructuring of the company, was handled by M&A Securities Sdn Bhd.
As part of the exercise, Halim’s Markmore Energy (Labuan) Ltd and CaspiOilGas LLP entered into a joint investment agreement with Sumatec to develop the onshore Rakushechnoye oil field in the oil-rich region of Mangystau, Kazakhstan.
The deal was a life saver for both. For Halim, Sumatec is a platform for a return to pole position in corporate Malaysia after an earlier try via Seloga Holdings Bhd failed to excite the market.
For Sumatec, the deal saved the company from being delisted, and if the company’s advisers are to be believed, it is redemption and a shot at greatness in far away Kazakhstan.
“Halim is now prepared to take the lead. He has used personal ties to bring some big names with large followings into the company, to lend credibility to the Sumatec O&G brandname. Bigger
names will appear soon,” said a source.
Former banker and ace investor Tan Sri Chua Ma Yu is already in Sumatec, backing his old friend, as the “wunderkinds” of yesteryears prove to the market that they still pack a punch
in the 21st century.
Business Times reported a few months ago that Chua owns five per cent of Sumatec.