KUALA LUMPUR (Jan 6): Reach Energy Bhd has announced that its unit in Republic of Kazakhstan might be affected from the country’s recent state of emergency declaration.
In a filing to Bursa Malaysia on Thursday (Jan 6), Reach Energy said the government of Kazakhstan had on Wednesday (Jan 5) declared a two-week state of emergency in Almaty and the western Mangystau province, where Emir-Oil LLP, the company’s sub-subsidiary is located.
Reach Energy further noted that the state of emergency includes curfew, movement restrictions, ban on mass gatherings and internet disruptions.
“The cumulative effects might contribute to a shortfall and impact the company financially and operationally.
“The company is unable to ascertain the full financial and operational impacts at this juncture due to the uncertain situation in Kazakhstan,” it said.
Reach Energy added that it will make further announcements on the financial and operational impacts as well as consequences in relation thereto as and when there is new development.
According to the oil and gas exploration and production company’s website, Reach Energy took over the operatorship of Emir-Oil LLP with a majority of 60% indirect interest as of late 2016.
Emir-Oil LLP holds the entire subsoil use rights in an 850.3 sq km onshore hydrocarbon exploration and production contracted area in Mangystau province (in the southwestern region of the Kazakhstan).
According to a Reuters report, Kazakh president Kassym-Jomart Tokayev said on Wednesday that he had appealed to a Russia-led security bloc to help Kazakhstan deal with a "terrorist threat".
This comes as the Central Asian republic saw the worst unrest in over 10 years, which was initially sparked by a fuel price rise.
Reach Energy’s share price finished 7.69% or half a sen higher at seven sen, bringing a market capitalisation RM76.75 million.