The ownership structure of the joint venture between energy developer Basic Energy Corporation and Malaysian company Petrosolve Sdn Bhd of Malaysia will be 70 percent Basic and 30 percent Petrosolve, Basic said in a disclosure to the Philippine Stock Exchange.

The new company, Grandway Group Ltd., will be based in Hong Kong and conduct oil exploration activities in the Philippines and overseas.

Basic Energy is an energy developer engaged in the exploration, production, and supply of alternative and renewable energy, oil and allied products and services. Petrosolve is engaged 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. It also holds the patent rights to a recent technology for enhanced oil recovery.

Grandway will operate as the corporate vehicle for the two firms “to enter into business relationships and transactions with respect to the management and operation of oil wells,” said Basic.

“We partnered with Petrosolve to look for projects. We are still looking at potential projects, but not necessarily in the Philippines. It could be outside [of the Philippines],” said Basic president Oscar de Venecia Jr.

De Venecia added that the firms have already identified certain areas for exploration and development but cannot divulge details yet.

“No definite projects yet. But we would want to start as soon as possible,” he said. — BM, GMA News

Source: http://www.gmanetwork.com/news/story/299964/economy/companies/basic-energy-to-own-70-of-basic-petrosolve-joint-venture