MEO Australia has signed a strategic co-operation framework agreement (SCFA) with Shenzhen based Hongfu Fund.
The SCFA provides a broad commercial framework for MEO and Hongfu Fund to jointly consider direct equity investments in producing projects or projects capable of delivering near term production, MEO said in a statement.
The SCFA is initially for a 1 year term. Under the SCFA, MEO will provide a new ventures technical and commercial screening service on a non-exclusive basis, while Hongfu Fund will assist in securing funding for accepted projects and provide MEO with a disproportionate equity interest and profit share.
MEO’s CEO and MD Jürgen Hendrich said: “We are delighted with the signing of this strategic co-operation framework agreement which provides Hongfu Fund with access to deal flow in oil and gas while MEO gains access to a financier of first resort. Since meeting with Hongfu Fund in December 2013, we have been engaged in dialogue to explore ways in which we could collaborate to our mutual benefit. The agreement leverages MEO’s technical and commercial strengths and Hongfu Fund’s access to the growing store of wealth in China coupled with an incessant need to secure additional resources to fuel continued growth. We look forward to a prosperous, long term relationship.”