KUALA LUMPUR (May 12): BTM Resources Bhd is no longer proceeding with its plan to venture into the liquefied petroleum gas (LPG) business in Kazakhstan.
The group said it is terminating the heads of agreement it entered into last November with Markmore Energy (Labuan) Ltd (MELL), a company controlled by businessman Tan Sri Halim Saad.
The termination will not have any material financial impact on BTM and its subsidiaries, the group added in a filing to Bursa Malaysia.
Under the heads of agreement, BTM was to build a LPG production and gas processing facility with a capacity of 100 million standard cubic feet per day at its own cost, near the Rakushechnoye oil and gas field, which is owned by MELL.
BTM was to enjoy a profit of up to 166 tonnes per day of LPG and 3,700 barrels per day of condensate produced at the LPG plant.
The group was also to be given a guarantee of an operational profit of minimum return of 12% per annum for the project.
MELL, on the other hand, was required to exclusively supply natural gas from the Rakushechnoye field for processing at the plant.
BTM’s share price fell one sen or 10% to nine sen today, valuing the group at RM12.72 million.