Universal To Enter Indonesian Petroleum Sector
Universal Resources And Services (Universal), previously known as Sky China Petroleum Services, has entered into a memorandum of understanding with Calgary Petroleum to procure a 57.6 percent stake in the latter?s subsidiary, Hongkong New Wing Energy Development Company (HEDC). The proposed purchase will lead to a 49 percent equity interest in Challedon Service, a unit of HEDC. Challedon possesses a contract to carry out petroleum operations in certain oil blocks in Menduwai, Indonesia. The contract area is located in one of the world?s most prolific oil fields with substantial potential exploration prospects. Following the proposed acquisition, Universal would have the option, within the next three years, to increase its stake in HEDC up to 85 percent.extract from shares investment's writeup....hehehe

Significance: Since the disposal of Universal?s oil transportation business, the firm has been on the lookout for new profit avenues in line with its long term growth strategy. The proposed purchase will position Universal in a strategic spot to diversify its operations geographically beyond the People?s Republic of China.