Singapore-based oil an dgas firm Loyz Energy has signed two binding memorandum of understanding (MOUs) with Indian petroleum products maker Sun Petrochemicals.
Under the first MOU, Loyz Energy will bid for upstream projects together with Sun Petrochemicals' exploration and production division, Sun Oil & Natural Gas (SONG).
In several cases, SONG will bear the entire costs and expenditure of Loyz Energy's share of the joint project.
Loyz Energy will be entitled to its share of revenue once commercial production of hydrocarbons starts and there is net revenue accruing to the project.
The company will also be responsible for its share of future costs.
In the second MOU, Loyz Energy will transfer its assets in India, featuring two oilfields, to SONG.
SONG will in turn commit $1m to increase production and monetise the reserves at both fields.
Loyz Energy managing director Adrian Lee said: "This strategic partnership with Sun Petrochemicals, a key industry player with rapidly expanding upstream operations, will accelerate our own efforts to add prime producing assets to our portfolio.
"The two MOUs represent a significant step forward for Loyz Energy as they will allow us to focus on growing revenues and optimising returns while reining in costs and minimising operating risks."
Loyz Energy produced 1,200 barrels of oil per day in December 2014. The company's balanced portfolio provides exploration assets with new prospects, as well as production from onshore Thailand.