Global Oil 57 and Asean Energy announce crude oil supply contract
04.09.2014 / Global Oil 57 for EnergyBoardroom.com
Global Oil 57 and Asean Energy announced the signing of a 150 million barrel crude oil supply contract worth USD 15 billion and upstream and downstream development projects agreement in Southeast Asia
Singapore, September 4th, 2014 – Global Oil 57 announces the signing of an award contract to Asean Energy for a 5-year, 30,000,000 barrel per year crude oil contract. As consideration of the supply contract and project management, Asean Energy signed a share swap agreement with Global Oil 57 and both companies agreed to development of upstream and downstream oil and gas exploration and supply projects in South East Asia.
Subject to the negotiation, execution and delivery of definitive agreements and applicable corporate and regulatory approval, Global Oil 57 has agreed to award a 5-year, 30,000,000 barrel per year crude oil supply contract to Asean Energy. The contract is expected to generate approximately US 3,000,000,000 (Three Billion United States Dollars) annual revenue to the Company, with a gross profit of approximately USD 30,000,000 per year (an estimated USD 1.00/barrel).
The oil supply contract is being awarded as part of a 72,000,000 barrel per year crude oil supply contract Global Oil 57 has secured from one of China’s largest privately held petrochemical companies, China Ocean Energy Group, signed on May 27, 2014 in Singapore.
Global Oil 57 and Asean Energy intend to jointly manage selected oil and gas assets to be developed in Indonesia. Global Oil 57 will assist Asean Energy in raising capital to jointly develop selected projects. Asean Energy will enter into a share swap agreement with Global Oil 57 as consideration for the supply contract and management thereof. The actual mechanism and valuation required to complete the transaction is expected to be finalized through a definitive agreement between Asean Energy and Global Oil 57 in Canada on/or before September 30, 2014. Additional upstream and downstream oil and gas business opportunities will be explored and managed jointly by Global Oil 57 and Asean Energy.
Thana Balan P. Jaganathan, Executive Chairman and president of Global Oil 57 Group, stated, “We are very happy to be working with Asean Energy to secure crude oil supply for our customers. The reliable supply of these products is critical to the operations of our clients around the world and, therefore, critical to our success.” Mr Jaganathan added, “we are also very proud to sign to jointly manage the overall project management of their oil fields in Indonesia, which has a very high potential for oil production, adding to our already strong global network of commodity suppliers. These deals are part of Global Oil 57’s business growth strategy and will be long-term business associations.”
Wayne Koshman, CEO of Asean Energy, stated, “we are very pleased and warmly welcome Global Oil 57’s support to help advance our common upstream and downstream growth objectives. Asean has spent the last 14 months in Indonesia, Myanmar and Brunei, sourcing projects and developing the necessary political and local business relationships critical in developing E&P projects in emerging markets. What is required is a ready supply of capital, strong technical team and rapid mobilization to secure potential projects. With the strength of a reliable partner like Global Oil 57 and access to technical and financial resources, Asean Energy will be well positioned to mobilize its local team and advance its interests towards early cash flow and securing additional opportunities.”
About Global Oil 57 Group
Global Oil 57 Group of companies is headquartered in Singapore and has an operation office in Canada and several offices in more than 15 countries worldwide. Global Oil 57 operates out of Singapore and has evolved in a very short time to become a leading player in the oil and gas exploration, production and the import/export sectors throughout Southeast Asia and the world. Additional background can be found at www.globaloil57.com.
About Asean Energy
Asean Energy is Canadian-based oil and gas issuer listed on the CSE, under the symbol “ASA”. Operations are primarily focused on oil field redevelopment (EOR) and near-production opportunities, as well as well-positioned large-target exploration fields in Southeast Asia. The Company employs a strategy of attracting farm-in and joint venture participation to reduce risk and shareholder dilution. Additional information is available under Asean Energy’s SEDAR profile at www.sedar.com.