(Alliance News) - Nostrum Oil & Gas PLC on Friday said subsidiary Zhaikmunai LLP has agreed an extension of its processing deal with Ural Oil & Gas LLP.
The Kazakhstan-focused oil & gas company said the agreement involves the processing of third-party hydrocarbons delivered by Ural, which has now been extended on new terms until May 2031.
Ural operates the Rozhkovskoye field, which is 20 kilometres from Zhaikmunai's processing facilities, and is a joint venture between NC KazMunayGas, which holds 50, MOL Group, which holds 22.5%, and FIOC-Sinopec, which holds the remaining 27.5%.
Production at the Rozhkovskoye field began in December 2023.
"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," said Nostrum Chief Executive Officer Arfan Khan.
"Securing additional third-party hydrocarbon feedstock through to 2031, together with Nostrum's plans to develop the upstream Stepnoy Leopard fields, represent important steps towards meaningfully increasing the utilisation of Nostrum's world class processing facilities that will help shape a robust growth-oriented business plan for the next decade.
"At the same time, we recognize that the extended agreement is mutually beneficial for Ural O&G enabling further field development of the Rozhkovskoye field to the fullest extent."
Shares in Nostrum Oil & Gas were up 3.1% at 2.92 pence in London on Friday afternoon. The stock has fallen 49% over the past year.
By Emily Parsons, Alliance News reporter
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