Electronics manufacturer and distributor WE Holdings has taken a further step in its bid to secure a foothold in Myanmar's oil and gas sector.

It said yesterday that it has acquired a joint‐venture company in Singapore, WE Dragon Resources Pte Ltd, together with Myanmar businessman Nay Win Tun, to explore petroleum, oil and gas, and related business opportunities in Myanmar. WE and Mr Nay, chairman of the Ruby Dragon Group, will each hold 50 per cent of WE Dragon.

In due course, the share capital of WE Dragon will be increased to $200,000 comprising 200,000 shares, the company said, although the amount will grow to "tens of millions" of dollars over the next two to five years.

WE said that the investment in WE Dragon will be funded by its internal resources. It will also seek shareholders' approval for the new business.

Both parties have also signed a non‐binding memorandum of understanding (MOU) for a proposed collaboration to carry out petroleum onshore projects in five oilfields in Myanmar through a project company.This project company will carry out the exploration of petroleum fields, drilling, petroleum extraction, and the recovery and trading of petroleum products.

WE lost 0.9 per cent to end trading at 10.7 cents yesterday.

Source: AmFraser