Oil and gas company Richmond Energy UK Ltd and Philippines-based Suc Ho LLC Inc, which are undergoing a merger exercise, have picked Malaysia as the headquarters for their enlarged entity.
With the base here, Suc Ho Richmond Holdings Sdn Bhd (SHRH) will provide the merged group a platform to seek projects in the country.
SHRH said the merger will also open the way for the company to go into globally recognised development projects for eco-tourism which will be mainly concentrated in Malaysia and the Philippines.
SHRH CEO Thana Balan said the company intends to develop hospital (medical tourism) and education projects here but will not venture into the oil and gas sector as the market is saturated with big players.
Under the merger deal that was signed here yesterday, Richmond Energy will hold a 51 percent stake in SHRH with Suc Ho Europe SRL, the affiliate company of Suc Ho LLC Inc, the rest. SHRH will benefit from its assets in Mauban, Quezon in the Philippines in the form of development and mining land with an estimated face value of $4.5 billion.
Suc Ho will also provide financial assistance to Richmond Energy to purchase the remaining oil concessions in Saratov, Russia and also provide the liquidity needed to enhance the drilling operations.
Balan said: “In return, Richmond Energy will exchange its shares with Suc Ho in all its operations such as the acquisition of liquefied natural gas (LNG) contract with Krishak Bharathi Cooperative Ltd (KRIBHCO), India; the construction of a petrochemical plant in Damghan, Iran; and the oil drilling operations in Saratov, Russia.”
Speaking after the signing ceremony, he said Richmond Energy will supply LNG to KRIBHCO’s Hazira fertiliser complex in Gujerat, India.
“We will be supplying six million standard cubic metres per day (mmscmd). KRIBHCO has also stated its intention to expand its facilities and indicated prospects of a further 2.2 mmscmd in its orderbook from Richmond Energy. The future contract is estimated to increase the group’s earnings by 30 percent for the year ended April 2013.”