Business

Thursday September 3, 2009

UBG buys interest in Thai concessions

By LEE KIAN SEONG


Pearl Thailand’s concessions contain potential hydrocarbon basins

KUALA LUMPUR: UBG Bhd’s wholly-owned subsidiary UBG Energy has acquired the entire equity interest in Pearl Thailand (Holdings) Ltd from Pearl Energy Ltd for up to US$19.2mil cash.

The company told Bursa Malaysia that the new acquisition would give UBG “participating interest” in offshore petroleum concessions in six blocks that contain potential new hydrocarbon basins in the Gulf of Thailand.

It said Pearl Thailand, via its subsidiaries, hold a 20% participating interest in four of the six concessions and 25% stake in the two remaining concessions.

UBG chairman Datuk Seri Mahmud Abu Bekir Taib said the company’s entry into the oil and gas business had come at a “most opportune time”.

“This tie-up with Pearl Energy will provide UBG with the exposure to exploration risks and returns while we seek to build up capacity in other segments of the oil and gas value chain,” he said.

Mahmud said UBG was on the hunt for a few more assets to make its position in the oil and gas sector “meaningful”.

“Our current investment portfolio comprising investments in the construction and water infrastructure sectors would be balanced with the acquisition of a few more oil and gas assets,” he added.

The company also did not rule out participating in the utilities industry in the near future.

Under the agreement, UBG said it had agreed to assume “historical costs” borne by the Pearl group in relation to the concessions amounting to US$16.1mil, adding that the acquisition would be funded entirely by internal funds.

Pearl Energy will continue to hold majority interest and operate the concessions after selling off Pearl Thailand. An oil and gas operator in South-East Asia, Pearl Energy is capable of producing the equivalent of over 20,000 barrels of oil per day.

It is a wholly-owned unit of Mubadala Development Co, a business development and investment company with headquarters in Abu Dhabi.


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