KUALA LUMPUR, Feb 28 — Management services CN Asia Corporation Bhd has ventured into a construction and oil and gas (O&G) operations facilities deal in Kazakhstan with tycoon and former Renong Bhd executive chairman Tan Sri Halim Saad and Abu Talib Abdul Rahman.

In a statement today, CN Asia said it had signed a heads of agreement (HOA) with Markmore Energy (Labuan) Ltd (MELL) in which Halim and Abu Talib are directors. MELL, in turn, wholly-owns CaspiOil Gas LLP (COG), the other signatory to the HOA.

The deal involves a proposed joint-venture for the construction and facilities operation at the Rakushechnoye Oil and Gas Field in the Karakiyan District of the Mangistau Oblast, Kazakhstan.

CN Asia said the parties would collaborate in the development, production, marketing and export of hydrocarbon, including liquid and gaseous hydrocarbon in the field, with CN Asia investing and developing the Central Processing Complex together with COG.

The parties agree that all the crude oil produced at the Rakushechnoye Oil and Gas Field will belong to COG. In the event the crude oil is treated by the central processing complex, CN Asia is entitled to a fee to be fixed as soon as practicable, but not later than four weeks from the date of the HOA, the statement said.

The proposed Central Processing Complex is an integrated facility to process oil and gas separation as well as gas processing to extract condensate, liquefied petroleum gas and natural gas.

The investment value for the implementation of the Central Processing Complex is about US$285.0 million (US$1=RM4.19) for the first phase; the equity to be injected by CN Asia is 15.0 per cent, while the balance of 85.0 per cent is to be raised via issuance of debt or loan.

"The project provides the Group with an opportunity to diversify and expand its source of income. The Board believes that the project would contribute positively to its future earnings and improve the financial position of the Group.

"The additional revenue from the project is expected to enhance the company’s profitability and returns on shareholders’ funds,” CN Asia said in a filing to Bursa Malaysia. — Bernama