MANILA, Philippines – Grandway Group Ltd., a 70-30 joint venture between Basic Energy Corp. and Malaysian company Petrosolve Sdn Bhd, has received the endorsement of an Indonesian government agency for the establishment of a foreign investment company in Indonesia.

In a disclosure to the Philippine Stock Exchange yesterday, Basic Energy said the Grandway Group has received the endorsement of Indonesia’s Ministry of Law and Human Rights on the establishment of PT Basic Energy Solusi, the foreign investment company of the Grandway Group.

PT Basic Energy, based in Jakarta, Indonesia, will be the investment arm of the Grandway Group, for various business opportunities in the Southeast Asian country.

The company aims to provide consultancy, management and supervision services in the management of oil wells.

“It shall undertake certain aspects of the operations of oil wells, within the regulatory and social frameworks applicable in the identified oil field areas in Indonesia, using modern and chemical enhanced oil recovery technology to unlock oil resources and thereby increase oil production of these oil wells,” Basic Energy said.

PT Basic Energy, which shall be owned up to 95 percent by the Grandway Group, in compliance with Indonesian laws, will pave the way for the identification of the various oil projects it will undertake in Indonesia, Basic Energy said.

Furthermore, the company will be supported by the technical and operations experience of Basic Energy in the operation and management of oil wells and a chemical technology patent owned by Petrosolve Sdn Bhd for enhanced oil recovery and increased oil production.

Basic Energy and Petrosolve announced their partnership in February, saying this would allow both companies to expand their respective operations globally.

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

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 including the exploration and development of contract areas situated in offshore and onshore Mindoro.

Source: http://www.philstar.com/business/2013/06/19/955556/basic-energy-sets-indonesian-firm