KUALA LUMPUR (Oct 16): Globaltec Formation Bhd has aborted its plan to collaborate with Hong Kong's EPI Energy Holdings Ltd to participate in the exploration and production activities of Globaltec's Indonesian unit.

It cited failure to reach a mutual agreement on the commercial terms as reason for the termination of the Memorandum of Understanding (MoU).

"We wish to announce that the MoU has been terminated in accordance to the expiration term of 45 days of the MoU," Globaltec said in a filing with Bursa Malaysia today.

On Aug 30, Globaltec had announced that EPI Energy was interested in participating in its Indonesian coal bed methane exploration and production by acquiring a certain percentage in its Indonesian unit, Dart Energy (Indonesia) Holdings Pte Ltd.

Under the MoU, EPI Energy was supposed to provide the technical know-how, as well as financial support for the development of the production sharing contract of Dart Energy.

Dart Energy had recently submitted its first Indonesia coal bed methane plan of development for the Tanjung Enim PSC to Indonesia’s Ministry of Energy and Mineral Resources for approval.

Dart Energy is a wholly-owned unit of Globaltec's Australia-listed subsidiary NuEnergy Gas Ltd.

EPI Energy is a wholly-owned subsidiary of Hong Kong Stock Exchange-listed EPI (Holdings) Ltd. EPI together with its subsidiaries are principally engaged in petroleum exploration and production, money lending and investment in securities business.

Shares in Globaltec closed unchanged at four sen today, with a market capitalisation of RM215.27 million.