Dagang NeXchange increases stake in North Sea operator

This makes Ping a subsidiary of DNeX Energy Sdn Bhd (DNeX Energy), a wholly owned subsidiary of DNeX. Ping is an upstream oil and gas company, with a balanced portfolio of producing and developing assets in the Anasuria Cluster located in the UK North Sea.

“The upswing in Brent oil prices to above US$70 per barrel level augurs well for our Energy segment. Against this favourable backdrop, we will be expanding our business in the upstream O&G sector to capitalise on the upcycle. To enhance our production levels at the Anasuria Cluster, we have earmarked about US$71 million for redevelopment activities over the next five years. These activities include the drilling of infill wells, debottleneck exercise and facilities improvement work,” said Tan Sri Syed Zainal Abidin Syed Mohamed Tahir, Group Managing Director of DNeX.

“Being in the driver’s seat now allows us greater flexibility to plan and implement longer term strategies to realise Ping’s long-term growth potential. The shift in investment of major oil players to energy transition and renewable energy sector has presented us with opportunities to acquire mature and producing O&G fields at attractive prices. Ping’s expansion plans will be directed to expand and unlock the potential of other brownfield assets within the United Kingdon and Southeast Asia region.”

The acquisition of the additional 60% stake is valued at US$78 million and will be satisfied by a combination of US$40.95 million in cash, and the issuance of new ordinary shares in DNeX and new redeemable preference shares in DNeX Energy, for the remaining US$37.05 million.

Ping will be led by Encik Zainal Abidin Jalil as Managing Director and Dato’ Robert Fisher will serve as Chairman of Ping post-acquisition. Dato’ Robert Fisher currently serves as Independent Non-Executive Director of DNeX and Encik Zainal Abidin Jalil currently sits on DNeX’s board as Executive Director.

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Read the article online at: https://www.oilfieldtechnology.com/offshore-and-subsea/01072021/dagang-nexchange-increases-stake-in-north-sea-operator/