BTM Resources Bhd has terminated its heads of agreement (HOA) with Markmore Energy (Labuan) Ltd (MELL), which it entered into last November, to venture into the liquefied petroleum gas (LPG) business in Kazakhstan.
In a filing with Bursa Malaysia, BTM said the HOA was terminated as the conditions precedent is not being fulfilled by the Conditions Cut-Off Date.
“Upon the termination, the HOA shall have no further force or effect and neither party shall have or make any claim against the other whatsoever, save and except for any antecedent breaches under the HOA which none is identified as of the date of this announcement.
“The termination will not have any material financial impact on BTM and its subsidiaries,” it added.
In a filing with the local bourse on Nov 13 last year, BTM said the HOA with MELL was intended to set out the essential terms and conditions for it to participate in the proposed production of LPG (together with associated natural gas condensate) from the natural gas supplied from the Rakushechnoye Oil and Gas Field.
It said the proposed LPG production is envisaged to comprise a production plant and gas processing facility with a capacity of 100 million standard cubic feet per day.
Of the production capacity, BTM said it would be entitled to up to 116 metric tonne per day of LPG and 3,700 barrel per day of pondensate produced at the LPG plant, enabling the company to enjoy a minimum return of 12% per annum from the project. – May 13, 2020, Bernama
