OREANDA-NEWS. October 03, 2014. CATALIST-listed OEL Holdings has entered into a non-binding memorandum of understanding (MOU) to buy a stake in a company indirectly involved with China oil giant PetroChina in developing two oilfields in China's Jilin province.

OEL will buy a 60- to 100-per-cent stake in Hong Kong firm Allied Resources for between SAD22.5 million and SAD 37.5 million. Shares in OEL could be issued at 9.5 Singapore cents each to the seller or his nominee.

Currently loss-making, OEL gets income from property rental and ship repair.

Allied Resources' wholly-owned subsidiary, Jilin Hengli Industries, owns a 50-per-cent interest in Qian An Oilfield Development. Qian An is a 50-50 joint venture between Hengli and PetroChina involved in extracting oil and natural gas from the two oilfields, which are currently in production, OEL said.