PDZ buys Kazakhstan gas asset

PDZ buys Kazakhstan gas asset

Kuala Lumpur: Malaysia’s PDZ Holdings plans to diversify into the oil and gas sector has progressed. The group, which controls a local feeder line in Malaysia, has entered into a framework agreement with Ken Makmur Holdings for the proposed production of LPG and condensate from the natural gas supplied by the latter from the Rakushechnoye oil and gas field Kazakhstan, with an indicative entry cost of RM656m.

Payment for the proposed agreement will be in the combination of cash of RM400m and the issuance of redeemable convertible preference shares worth RM256m.

“The proposed LPG production would contribute positively to its future earnings and improve the financial position of the group,” PDZ said.

This is the second attempt by PDZ Holdings to diversify into the oil and gas business after it cancelled its earlier plan to purchase a 20% stake in Efogen. [07/11/14]