Listed Basic Energy Corporation is in talks with partner Malaysian oil firm on having their joint venture company manage oil wells in Java, Indonesia.

In a disclosure to the Philippine Stock Exchange On Thursday, Basic Energy said it is currently in talks with Petrosolve Sdn Bhd of Malaysia on assigning PT Basic Energi Solusi to manage and supervise certain oil wells in East Java, Indonesia.

“The discussions involve the identification and selection of oil wells and the right to undertake some aspects of the management and operation of which shall be assigned by Petrosolve to PT Basic Energi Solusi,” the disclosure read.

A foreign investment company incorporated in Indonesia, PT Basic Energi Solusi is owned and controlled by Grandway Group Limited which in turn is 70-percent owned by Basic Energy and 30-percent by Petrosolve.

This came after Badan Koordinasi Penanaman Modal (BKPM) of Indonesia approved a Grandway decision to invest up to 8.5 billion Indonesian rupiah in PT Basic Energi, and the Ministry of Law and Human Rights of Indonesia approved creation of the joint venture company.

“When the assignment is finally negotiated and implemented, PT Basic Energi Solusi shall be poised to undertake the agreed upon aspects of the operations of the selected oil wells, which shall involve the mobilization of its financial, technical and operations resources, derived from the aforementioned joint venture between Basic Energy Corporation and Petrosolve,” the company said.

In February, Basic Energy partnered with Petrosolve to identify which oil wells to explore.

Basic Energy is a holding company with equity investments in an investment holding company, a real estate and information technology company, an oil exploration and investment holding company, a biofuels developer, an agricultural company, and an exploration and development company of geothermal energy resources.

Petrosolve is in the business of oil field services including the application of chemicals for increased oil production and the development of oil and gas fields and wells. — Danessa Rivera/VS, GMA News

Source: http://www.gmanetwork.com/news/story/313704/economy/companies/basic-energy-malaysian-partner-in-talks-on-managing-indonesia-oil-wells