Business
Construction of third unit of GTF
Construction of third unit of GTF.
About this update from Nostrum Oil & Gas Plc
[{"type":"text","content":"\n \nRNS Number : 4193N Nostrum Oil & Gas PLC 28 July 2014 \n \n\n \n \nNostrum Oil & Gas plc\n28 July 2014 \nConstruction of the third unit of the Gas Treatment Facility\nNostrum Oil & Gas plc (the ÒCompanyÓ and together with its subsidiaries, the ÒGroupÓ), an independent oil and gas exploration and production company with assets in North-Western Kazakhstan, announces that the Group has entered into a contract with JSC ÒOGCC KazStroyServiceÓ (the ÒContractorÓ) for the construction of the third unit of the GroupÕs gas treatment facility (ÒGTFÓ) for a consideration of US$150 million (the ÒConstruction ContractÓ). \n \nAs the Contractor is an affiliate of KazStroyService Global B.V. (ÒKSS GlobalÓ), which currently owns approximately 26.6% of the CompanyÕs ordinary shares, the Construction Contract is a related party transaction for the purposes of the Listing Rules. Accordingly, the Construction Contract is subject to the requirements of the Listing Rules and is conditional, inter alia, upon approval by the shareholders of the Company. As required by the Listing Rules, KSS Global has undertaken not to vote on the resolution to approve the Construction Contract at the general meeting of the CompanyÕs shareholders to be convened in due course. \n \nA further announcement regarding the posting of a circular to shareholders convening the necessary general meeting will be made in due course.\n \nCommenting, Kai-Uwe Kessel, Chief Executive said:\n \nÒI am delighted that we continue to make good progress with the construction of GTU3. This Construction Contract forms a major part of the overall project. I believe we are now well positioned to deliver the plant on time and on budget. We look forward to working on the continued construction of GTU3 and doubling production by the end of 2016.Ó\n \nConstruction Contract details\n \nFollowing the successful completion of the first phase of the GTF, consisting of two units, the Group proposed to build a third unit for the GTF (ÒGTU3Ó) by mid-2016. The construction of GTU3 is important for implementing the GroupÕs strategy to increase operating capacity and production of liquid hydrocarbons. Management estimates, based on the production profile of both proved and probable reserves reported in the 2013 Ryder Sc...