Following the signing of two production sharing contracts (PSCs) with Petroliam Nasional Berhad (Petronas) on Aug 30, 2021, SGX-listed Rex International has signed deeds of novation with Petronas, Duta Marine Sdn. Bhd. (Duta Marine) and Pantai Rhu Energy Sdn Bhd (PRE) for PRE to replace Rex International under the PSCs.
Duta Marine is Rex International’s Malaysia partner while PRE is a wholly-owned subsidiary under Rex.
All provisions of the PSCs will remain in full force and effect and binding.
Under the novation, the participating interests of PRE and Duta Marine are 95% and 5% respectively with PRE being the operators of the PSCs.
Rex has also submitted an irrevocable and unconditional parental guarantee to perform or take whatever steps, as may be necessary to achieve performance of obligations thereof, in accordance with the terms of the, said PSCs to Petronas.
PRE will mainly serve as a special purpose vehicle (SPV) for matters relating to the company’s development and production assets in Malaysia.
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PRE’s issued and paid-up share capital is a total of RM500,000 ($157,779) comprising 50 ordinary shares.
The PSCs are related to the development and production of the Rhu-Ara Cluster, consisting of Rhu and Ara fields, lies within the Penyu Basin 150km off the coast of oil centre Kerteh, Terengganu.
The Diwangsa Cluster, which lies in the northwestern side of the Malay Basin, comprises Diwangsa, Bubu, Korbu and Lerek fields. According to Petronas, these previously discovered fields have total estimated recoverables of 12.7 million stock tank barrels of oil (MMstb) for the Rhu-Ara Cluster and 10.7 MMstb for the Diwangsa Cluster.
Shares in Rex International closed 2 cents lower or 6.45% down at 29 cents on June 20.
