Nostrum Oil & Gas PLC announces binding terms for the treatment of third party hydrocarbons

02.08.18 15:32
/KASE, August 2, 2018/– NOSTRUM OIL & GAS PLC (London), whose shares are officially listed on Kazakhstan Stock Exchange (KASE), has provided press release to KASE dated August 2, 2018, which states the following: quote Zhaikmunai LLP, a subsidiary of Nostrum Oil & Gas PLC (“Nostrum” or “the Company” and together with its subsidiaries “the Group”) an independent oil and gas company engaging in the production, development and exploration of oil and gas in the pre-Caspian Basin, today announces it has entered into binding agreements to process third party hydrocarbons delivered by Ural Oil & Gas LLP (“UOG”). UOG 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. Once 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. unquote The full press release is available on KASE website – http://kase.kz/files/emitters/ZHMN/zhmn_reliz_020818_eng.pdf [2018-08-02]