Business
Binding agreement with Ural Oil & Gas LLP
Binding agreement with Ural Oil & Gas LLP.
About this update from Nostrum Oil & Gas Plc
[{"type":"text","content":"\n \nRNS Number : 5513W Nostrum Oil & Gas PLC 02 August 2018 \n\n \nNOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, IN, INTO OR FROM ANY JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OF THAT JURISDICTION\n \n \nLondon, 2 August 2018\n \n \nNostrum Oil & Gas Plc agrees binding terms for the treatment of third party hydrocarbons\n \n \nNostrum Oil & Gas PLC (LSE: NOG) (\"Nostrum\", or \"the Company\"), an independent oil and gas company engaging in the production, development and exploration of oil and gas in the pre-Caspian Basin, today announces that through its subsidiary Zhaikmunai LLP it has entered into binding agreements to process third party hydrocarbons delivered by Ural Oil & Gas LLP (\"UOG\"). \n \nUOG is a company that is owned by KazMunaiGas (\"KMG\") (50%), Sinopec (27.5%) and MOL Group (\"MOL\") (22.5%). According to the 2017 KMG Annual Report, the Rozhkovskoye field has 196 million boe 2P reserves booked. Research produced by Wood Mackenzie states that the company has already drilled and completed eight wells in the Rozhkovskoye field. The Rozhkovskoye field is within 20km of Nostrum's Chinarevskoye field.\n \nOnce UOG has obtained all necessary internal approvals they will fund the infrastructure required to deliver the hydrocarbons to the boundary of the Chinarevskoye field. The high level commercial terms comprise of two parts. Firstly, a tolling fee for the stabilisation of liquid condensate which will be US$8 per barrel and secondly the purchasing of raw gas from UOG at a price to be agreed at the point of delivery.\n \nKai-Uwe Kessel, Chief Executive Officer of Nostrum Oil & Gas, commented:\n \n\"This agreement marks a significant step for Nostrum in demonstrating the value of its infrastructure. Whilst the Company's focus remains stabilising and ramping up production from the Chinarevskoye field, this agreement provides the potential for a secure revenue stream in the next three to five years. Nostrum's ability to fully monetise the hydrocarbons in the Chinarevskoye field is not restricted as we will have 4.2bcm of annual processing capacity available through GTU 1, 2 and 3. It further reinforces the potential of Nostrum's infrastructure and its ability to carry out value accre...