KUALA LUMPUR (April 28): Practice Note 17 (PN17) Nakamichi Corp Bhd has inked a memorandum of understanding (MoU) with Aktau Transit LLP (AT) on a proposed collaboration to jointly develop AT oilfields in Aktau, Kazakhstan.

In a filing with Bursa Malaysia today, Nakamichi said the MoU is part of its regularisation plan.

The timber company, whose shares have been suspended from trading for more than two years, said Nakamichi and AT have jointly agreed to commence discussions and negotiations on the structures and terms of the MoU, with the intention of finalising and entering into the relevant definitive agreements within three months from the date of the MoU.

Caspian Oil Project LLP owns the entire equity of AT, which in turn owns the concession for onshore oil and gas exploration and production in Kazakhstan, the filing stated.

Nakamichi said the AT oilfields are onshore and located in the southwestern province of Mangistau, 90 km to North-West from Aktau.

The oilfields have a production capacity of 700 barrels of crude oil a day, with reserves of 25 million barrels of crude oil.

It has 29 production wells and a concession period of 22 years, which expires in 2038.

Bursa Malaysia announced that Nakamichi fell into PN17 status after creditors wound up the company's last operating subsidiary, Tamabina Sdn Bhd, on April 28, 2015.

The trading of the company's shares on Bursa Malaysia was suspended from Sept 9, 2013 due to Nakamichi's failure to provide its quarterly report for the period ended June 30, 2013.