Baron Oil plc reported Friday that it has entered into a joint venture with SundaGas Pte Ltd., a new Singapore-based exploration and production company, to look into new business opportunities in Southeast Asia.
Under the arrangement, Baron will pay SundaGas a monthly fee for an initial period of 6 months from Oct. 1, after which the joint venture will be reviewed. Should opportunities already identified by SundaGas or are identified during the initial period come to fruition, the company will have the right to take an interest in them on the same terms as SundaGas.
SundaGas was established by Dr Andy Butler, formerly vice president for Business Development at Kuala Lumpur-based Mitra Energy Inc., with the latter holding many years of experience as an operator in Southeast Asia. SundaGas has already identified a portfolio of potential opportunities, ranging from new production sharing contract (PSC) applications to purchases of existing production as well as possessing field operations capability in the region.
"This offers a great opportunity for Baron to open up a new operation in one of the few areas of the World where there is both strong demand for oil and gas and the clear support of governments to make exploration and production easy to achieve. We are particularly interested in gas opportunities because of the stable, long-term pricing environment. Having access to the experience and deal flow of the SundaGas team gives Baron a head start that would take years to achieve if built from scratch," Bill Colvin, chairman of Baron, said in the press release.
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