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(Alliance News) - Nostrum Oil & Gas PLC said Monday the delivery of gas from Ural Oil & Gas will be delayed.
Shares in Nostrum were down 23% in London on Monday mid-morning at 8.42 pence each.
The Kazakhstan-focused oil and gas explorer entered into an agreement to process third-party hydrocarbons delivered by Ural Oil & Gas in the summer of 2018. Ural Oil & Gas, a company owned by KazMunaiGas, Sinopec and MOL Group, plans to develop the Rozhkovskoye field in Kazakhstan - a field about 20 kilometres from NOG's Chinarevskoye field.
The agreement includes a tolling fee for the stabilisation of liquid condensate which will be USD8 per barrel and secondly the purchasing of raw gas from Ural Oil & Gas at a price to be agreed at the point of delivery.
On Monday, however, NOG said UOG is currently working on a new timetable for delivery.
"Despite this delay, UOG management expressed full commitment to deliver the gas before any penalties arise under the existing agreements, which would require gas to be delivered before April 9, 2023. Nostrum will provide further information when it receives further guidance from UOG regarding the date for expected delivery of first gas," NOG said.
Adding: "Nostrum remains in discussion with other third parties regarding the processing of gas through its infrastructure."
By Paul McGowan; paulmcgowan@alliancenews.com
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