Business
Processing Agreement extension with Ural Oil & Gas
Processing Agreement extension with Ural Oil & Gas.
About this update from Nostrum Oil & Gas Plc
[{"type":"text","content":"\n\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 \nTHIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION\n \nFOR IMMEDIATE RELEASE\n \n \nLondon, 21 March 2025\n \nZhaikmunai Processing Agreement extension with Ural Oil & Gas\n \nNostrum Oil & Gas PLC (LSE: NOG) (\"Nostrum\", or the \"Company\" and together with its subsidiaries, the \"Group\"), an independent mixed-asset energy company with world class gas processing facilities and export hub in north-west Kazakhstan, today announces that its wholly-owned subsidiary Zhaikmunai LLP (\"Zhaikmunai\") has entered into a binding agreement to extend its processing of third-party hydrocarbons delivered by Ural Oil & Gas LLP (\"Ural O&G\") on new terms until May 2031.\n \nUral O&G operates the Rozhkovskoye field, just 20 kilometres from Zhaikmunai's processing facilities, and is a joint venture between NC KazMunayGas (50% shareholder), MOL Group (\"MOL\") (22.5% shareholder) and FIOC-Sinopec (27.5% shareholder). The previous agreements, signed in 2018, for the processing of raw gas and liquid condensate from Ural O&G was set to expire in December 2027. The new processing agreement effective from March 21, 2025 will extend to May 26, 2031.\n \nProduction from the Rozhkovskoye field began in December 2023, with the first well producing 0.3mm cubic meters of raw gas per day according to MOL, and four additional wells expected to further boost production to 1.5mm cubic meters of gas per day. Also, as announced by MOL in December 2023, the expected gas and condensate volumes recoverable from the Rozhkovskoye field were 158.8 mmboe, comprising gas 101.5 mmboe and condensate 57.3 mmboe, based on the Kazakhstan State Balance Reserves Report.\n \nArfan Khan, Chief Executive Officer of Nostrum Oil & Gas, commented:\n \n\"This extended processing agreement is value accretive to the current agreement and demonstrates the continuing success of Nostrum's mixed-asset strategy and its capabilities as a reliable and efficient operator and partner. Securing additional third-party hydrocarbon feedstock through to 2031, together with Nostrum's plans to develop t...