Basic Energy, Malaysian firm tie up for oil ventures

MANILA, Philippines - Basic Energy Corp. has entered into a joint venture with Malaysian company Petrosolve Sdn Bhd for the exploration, development, management and operation of oil wells in and outside the Philippines.

The companies agreed to establish a joint venture company, which shall operate as the corporate vehicle for the parties to enter into business relationships and transactions with respect to the management and operation of oil wells, Basic Energy said in its disclosure to the stock exchange.

The partnership would allow both companies to expand their respective operations globally, Basic Energy also said.

Basic Energy president Oscar de Venecia said the partnership could be for projects outside the Philippines.

“We partnered with Petrosolve to look for projects. We are still looking at potential projects, but it’s not necessarily in the Philippines. It could be outside,” De Venecia said.

There are also no definite projects yet but De Venecia said there can be a number of exploration projects.

“There are no definite projects yet. But we would want to start as soon as possible. We are going to share our experiences and technical expertise,” he said.

In its disclosure, Basic Energy said the joint venture would result in a “strategic alliance” between the two companies.

“The joint venture will bring about a strategic alliance between Basic Energy and Petrosolve, with each party contributing their respective network, expertise and experience in the field of oil and gas exploration, development and production, and thus enable the parties to expand their respective operations globally,” Basic Energy said.

Petrosolve is a company registered in Malaysia and is engaged in the business of oil field services including application of chemicals for increased oil production and the development of oil and gas fields and wells.

Basic Energy is a listed firm presently engaged in energy development, particularly oil exploration. It also has investments in petroleum projects include the exploration, development and exploitation of contract areas situated in offshore and onshore Mindoro.