SINGAPORE - Homegrown energy group Loyz Energy has entered into two memoranda of understanding (MOU) with petroleum product manufacturer Sun Petrochemicals, the company said in a statement on Monday.
Under the first MOU, Loyz Energy will bid for projects together with Sun Petrochemicals' exploration and production division, Sun Oil & Natural Gas. In certain cases, Sun Oil & Natural Gas will bear the entire costs and expenditure of Loyz Energy's share of the joint project.
Once commercial production of hydrocarbons commences and there is net revenue accruing to the project, Loyz Energy will be entitled to its share of revenue and also be responsible for its share of future costs.
In the second MOU, Loyz Energy will transfer its assets in India - comprising two oilfields - to Sun Oil & Natural Gas. In turn, Sun Oil & Natural Gas will commit US$1 million to lifting production and monetising the reserves at the two fields.