RSM Singapore

Minerals, oil & gas

While renewable and clean sources of energy continue to gain popularity and traction among industries and consumers, oil & gas remains the world’s primary source of energy.

However, political and infrastructure risks faced by producers can escalate costs rapidly and render projects unprofitable. The inherent industry risks – environmental considerations, market volatility and complex cross-border operations – coupled with snowballing regulatory compliance and reporting requirements, continue to put pressure on oil & gas companies.

In September 2013, the Singapore Exchange (SGX) stepped up its efforts to regulate listing of mineral, oil and gas (MOG) companies through the introduction of new admission rules applicable to MOG companies with a view to better safeguard investors' interests and offer more investment choices in the sector. Some of these requirements include:

  • Listing aspirant that is not in production should have a market capitalisation of not less than S$300 million based on the issue price and post-invitation issued share capital;
  • Sufficient working capital for 18 months from listing;
  • At least one independent director with appropriate industry experience and expertise;
  • Appoint an audit firm with the relevant industry experience; and
  • Include in the offer documents a valuation report on the company's reserves and provide an independent qualified person's report on significant resources or reserves.