MoU Exchange at Malaysia-Kazakhstan Business Forum Further
Strengthens Trade Relationship Between Both Countries
12 JULY 2017, Astana, Kazakhstan - Malaysia-based Reach Energy Berhad, an oil and gas exploration and production company, today signed a Memorandum of Understanding (MOU) with the Akimat (regional government) of the southwestern region of Kazakhstan, Mangystau. Under the MOU, which was signed at the Malaysia-Kazakhstan Business Forum held in conjunction with EXPO 2017 here, Reach Energy will assist in attracting Malaysian companies to invest in priority industries in the region, such as oil and gas projects, infrastructure projects, construction, electricity and water supply, as well as tourism, targeting an investment amount of USD500 million to USD1 billion dollars over 3 years. The Akimat undertakes to support the Company and to provide possibility to achieve the goals specified in this Memorandum and provide investment protection.
The signing was conducted between Ir. Shahul Hamid Mohd Ismail, Executive Director/CEO of Reach Energy and Yeraly Togzhanob, the Akim (head of the regional government) of Mangystau region. It was witnessed by Datuk Ahmad Haji Maslan, Deputy Minister of International Trade & Industry, Malaysia, Dato’ Sri Senator S.K. Devamany, Acting Deputy Minister of Energy, Green Technology & Water, Malaysia as well as His Excellency Syed Mohamad Bakri Syed Abdul Rahman, Ambassador of Malaysia to the Republic of Kazakhstan.
The MOU will see both parties cooperating in attracting and sharing information with Malaysian companies on the advantages of investing in the Mangystau region. The Akimat will act as a one-stop center assisting potential new Malaysian investors in this region.
Reach Energy, which currently has 54 oil and gas wells in the Mangystau Region with plans to increase that number to 88 by 2026, will support and promote gas utilisation development in the Mangystau region, including the construction of a methanol plant, liquefied petroleum gas facilities (LPG), power generation plant, and other gas utilisation facilities.
Datuk Ahmad Haji Maslan, Deputy Minister of International Trade & Industry, Malaysia, said: “Malaysia and Kazakhstan have enjoyed 25 years of diplomatic relationship, with a trade volume of USD49.2 million last year. We are confident that this EXPO will bring our bilateral ties, trade and long-term collaborations to a higher level, as we expect to see more potential trade and cooperation between our two countries.”
“Today’s MOU signing is another milestone that will serve our common interests and contribute to the enhancement of the economic and social development of both nations. With over 90 Malaysian government and private organisations showcasing their latest products and services at EXPO 2017, we foresee more deals and MoUs being signed between Malaysian and Kazakh companies and government bodies,” he said.
The Malaysia-Kazakhstan Business Forum, was organised by the Ministry of International Trade and Industry as part of Malaysia’s participation at EXPO 2017 on “Future Energy”. The Forum provided a platform for Malaysian and Kazakh companies to share their experiences in doing business in their counterparts’ countries, with close to 100 participants attending the Forum.
Reach Energy shared its experience in doing business in Kazakhstan based on its acquisition of a concession contract that enables it to become the operator of the Emir-Oil Concession Block in the Mangystau region up to the year 2036. Similarly, Dolce Pharma LLC, one of the largest manufacturers of disposable medical products in Kazakhstan, shared its 14-year experience of doing business in Malaysia.
The Malaysia-Kazakhstan Business Forum is organised in conjunction with Malaysia’s Tourism & Business Week programme at EXPO 2017. The EXPO is themed “Future Energy” and Malaysia’s participation is spearheaded by the Ministry of Energy, Green Technology and Water, Malaysia together with its agency Malaysian Green Technology Corporation.
Several events and programmes have been lined up by Malaysia throughout the duration of EXPO 2017 between June 10 and September 10, to showcase the nation’s emerging market leadership in Green Growth, as well as to strengthen bilateral trade and cooperation. For more details or to register for the weekly-themed forums and talks, visit http://www.greenfuturemalaysia.com