Beijing based oil exploration company Keystone Delta Oil this morning proposed the creation of a new pipeline to run between its operations in the South China Sea and mainland China
Apr. 12, 2013 - BEIJING, China -- At a board of directors meeting held this morning at Keystone Delta Oil's offices in Beijing, Chief Executive Officer Mr Peng Chong announced the possibility of a new pipeline, designed to ease the company's transportation costs between its assets in the South China Sea and its mainland processing and distribution sites.
According to Chief Executive Officer Mr Peng Chong, this initial expenditure could save Keystone Delta Oil tens of millions of dollars over the coming years, and would need to be largely be funded by investor capital. Chief ExecutiveOfficer Mr Peng Chong was quoted as saying "The proposal itself will require a great deal of planning and prior due diligence before it is given an okay by our board of directors, but I do believe that over the medium to long term, this proposed pipeline would reduce Keystone Delta Oils overheads, as well as securing our place as a dominant presence in the South China Sea".
With the possibility of a an additional multi-platform license in the region having been recently announced by Keystone Delta Oil, the board of directors confidence in its operations and future prospects is clearly extremely high. However, as Chief Executive Officer, Mr Peng Chong himself commented this morning, it remains to be seen whether public confidence within the wider investment community will suffice to deliver the much needed capital required to fund such a large scale project whilst the company is simultaneously investing in this new South China Sea license.
Non-Executive Director at Keystone Delta Oil, Dr Zhang Wei, who is now in the process of managing the new site's acquisition said "Keystone Delta Oil is cash rich at present, and has a strong estimated throughput for the coming years, especially with the new license the company is in the process of developing. What is important to remember is that Keystone Delta Oil has long term high level contracts in place, as well as an excellent asset portfolio; and so whether this pipeline proposal is implemented now or 24 months from now, Keystone Delta Oil is headed in the right direction to grow and create value for its shareholders."
Further information is scheduled to be released into the public domain in May 2013.