The joint venture between Philippine oil and gas firm Basic Energy Corp. and Malaysian firm Petrosolve Sdn Bhd got further approval in the establishment of a company in Indonesia with an initial capitalization of 8.5-billion rupiah, or approximately $858,500.
A disclosure to the Philippine Stock Exchange (PSE) on Tuesday showed that Grandway Group Ltd., the joint venture firm of Basic Energy and Petrosolve, recently received the endorsement of the Ministry of Law and Human Rights on the Deed of Establishment of PT Basic Energi Solusi, the foreign investment company of the joint venture in Indonesia.
PT Basic Energi Solusi, which has a registered office in Jakarta, Indonesia, will be the investment arm of the joint venture for the various business opportunities in Indonesia.
As approved by the Indonesia Investment Coordinating Board, the joint venture is authorized to provide consultancy, management and supervision services in the management of oil wells.
“It [PT Basic Energi] shall undertake certain aspects of the operations of oil wells, within the regulatory and social frameworks applicable in the identified oil field areas in Indonesia, using modern and chemical enhanced oil recovery technology to unlock oil resources and thereby increase oil production of these oil wells,” Basic Energy said.
In the previous month, Basic Energy disclosed at the PSE that Grandway Group had obtained from the Indonesia Investment Coordinating Board the approval of registration of its investment in PT Basic Energi.
Grandway Group is 70-percent owned by Basic Energy and 30-percent owned by Petrosolve. Grandway was established in Hong Kong in the first quarter of this year.
PT Basic Energi will be owned by Grandway up to 95 percent of its capital, in compliance with Indonesian laws.