Citic Envirotech has entered a construction and cooperation deal with Karazhanbasmunai JSC (KBM) to build and operate a facility for the demineralization of reservoir water in the field of Karazhanbas, the company said in a filing to SGX Monday.
In addition, the agreement calls for the long-term supply of desalinated water to Kazakhstan-based KBM for a 15-year concession period through 2035, the filing said.
Citic Envirotech said the estimated total investment costs were US$65 million, or around S$89.65 million.
“The successful completion of construction of the facility and the commencement of operations of the facility in Karazhanbas would mark the group’s entry into a new geographical market in Central Asia, which would provide the group with further credentials to secure similar projects in Central Asia in the future,” Citic Envirotech said.
“This would serve as a stepping stone to future opportunities for collaboration outside the PRC and allow the group to expand its business presence beyond the countries in which it currently operates and to further strengthen its reputation outside of the PRC,” the company added.
The deal will require shareholder approval, the company said.
KBM is a joint venture between Citic Canada Energy (CCEL), which holds 50 percent of the voting shares and 47.31 percent of the issued shares, and JSC KazMunaiGas Exploration Production, the filing said.
KBM is an associated company of Citic Group, which is also a controlling shareholder of Citic Envirotech, the filing said.
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