Kuala Lumpur, 8 August 2016 – Dagang NeXchange Berhad (“DNeX”) and Ping Petroleum Limited (“Ping”) have signed a commemorative agreement to mark the completion of DNeX’s acquisition, through DNeX’s wholly-owned subsidiary company, DNeX Petroleum Sdn Bhd, of 30 per cent enlarged equity of Ping.
The acquisition is a key milestone in DNeX’s diversification into the Energy sector, namely in the upstream oil and gas (“O&G”) segment and fulfilled at a cost of US$10.0 million. The transaction was completed on 30 June 2016.
At the signing, held in Aberdeen, Scotland recently, DNeX was represented by its Group Managing Director En Zainal Abidin Jalil while Ping was represented by its CEO Mr Ning Zhang. The signing was witnessed by Datuk Samsul Husin, Executive Deputy Chairman of DNeX and Mr David Roy Phillips, Chairman of Ping.
Buying into Ping serves as part of DNeX’s growth strategy in the Energy sector namely the upstream oil and gas (“O&G”) segment through acquiring producing assets that are for sale and offer development opportunities, and can be progressively scaled up over time.
“Our strategy in this segment is well matched with Ping’s focus on shallow water offshore production and development opportunities in South East Asia and the UK sector of the North Sea,” said Zainal.
“Moreover, we are able to leverage on the competency and the expertise of Ping’s human capital who are equipped with vast experiences in this business,” he said.
In addition, he said DNeX will use this opportunity to further build its competency as an upstream O&G player, and continue to look for other opportunities in proven and probable reserves as well as cashflow generating assets.
Through the acquisition, DNeX is tapping into reserves and resources of Ping’s acquisition of the Anasuria Cluster. Ping and Hibiscus Petroleum Berhad had jointly entered into sale and purchase agreements to each acquire 50 per cent interest in the Anasuria Cluster oil and gas fields and related facilities from Shell U.K. Limited, Shell EP Offshore Ventures Limited and Esso Exploration and Production UK Limited, which was completed on 10 March 2016. The transfer of the said asset was effective from 1 January 2015.