Pelaburan Mara Bhd is taking part in an oil and gas (O&G) venture in Kazakhstan spearheaded by Hand Energy Bhd.

In an exchange filing yesterday, Handal Energy said its wholly owned subsidiary, Handal Floaters Sdn Bhd, has on Jan 16 entered into a joint venture agreement (JVA) with Kazakhstan-based Hadid Oil & Gas LLP.

The parties will incorporate a limited liability partnership (LLP) acting as special purpose vehicle to participate in the operation for the early oil production field development program as per phase 1 of Nipineftegas field development plan and any other business as determined by them.

Handal Floaters shall provide the initial funding of US$5 million to be funded from the issuance of the redeemable non-convertible preference shares (RNCPS) to be subscribed by Pelaburan Mara, it said.

Incorporated in 2014, the Atyrau City -based Hadid is a limited liability partnership specialising in the O&G oil industry.

The filing said the LLP by Handal Floaters and Hadid will execute and manage the project which shall be evidenced and supported by the execution of the definitive agreement between CaspiOil Gas LLP, the concession holder in the Rakushechnoye oil and gas field within blocks XXXVIII, in the Karakiyan District of the Mangystau Oblast.

Hadid shall take all necessary action to ensure CaspiOil Gas grants the project to the LLP by the execution of the definitive agreement, it added.