Grandway Group Ltd., the joint venture company of listed Basic Energy Corp. and Petrosolve Sdn Bhd of Malaysia, recently secured another regulatory approval, firming up its investment in Indonesia.
Basic Energy reported to the Philippine Stock Exchange that Grandway recently received the endorsement of the Ministry of Law and Human Rights to establish another company, PT. Basic Energi Solusi, to be based in Jakarta.
PT. Basic Energi Solusi, which is capitalized at 8.5 billion rupiah, will be the investment arm of Grandway in various businesses throughout Indonesia.
Earlier, Grandway obtained the approval of Indonesia’s Investment Coordinating Board—the Badan Koordinasi Penanaman Modal—for the registration of PT. Basic Energi Solusi to be established in Jakarta.
Badan Koordinasi Penanaman Modal authorized the joint venture vehicle to provide consultancy, management and supervision services in the management of oil wells.
“It shall undertake certain aspects of the operations of oil wells, within the regulatory and social frameworks applicable in the identified oil wells, within the regulatory and social frameworks applicable in the identified oil fields in Indonesia, using modern and chemical enhanced oil recovery technology to unlock oil resources and thereby increase oil production of these oil wells,” according to Basic Energy’s disclosure.
Basic Energy, which has been pursuing partnerships to expand its business in oil, gas and the renewable energy sectors, will provide technical and operations experience for the Jakarta-based company in the operation and management of oil wells.
The chemical technology patent owned by Petrosolve, meanwhile, will enhance oil recovery and increase oil production.
Malaysia-registered Petrosolve is in the business of providing oil field services. Its operations include the application of chemicals for increased oil production and the development of oil and gas fields and wells.