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(Alliance News) - PetroTal Corp on Friday said it has secured an agreement with Peruvian state-owned company Petroperu SA for oil production from the Bretana oil field.
PetroTal said the deal allows it to ship all oil in the excess of its 1,200 barrels per day - which is a part of agreement with the Iquitos refinery - through the North Peruvian oil pipeline, which is owned by Petroperu.
In addition, PetroTal said Petroperu agreed to buy the oil at pump station in Saramuro at cost of USD4.25 per barrel.
This sales agreement will allow PetroTal to receive oil sales revenue earlier, it said, allowing PetroTal to maintain strong liquidity. For Petroperu, the increased oil volumes through the pipeline will enhance economics since Petroperu will earn the pipeline tariffs along with a commercialisation fee.
"We're pleased that Petroperu has exhibited such confidence in oil production from the Bretana oil field as our good quality oil output increases," said President & Chief Executive Manolo Zuniga.
"This will ensure that Petroperu has the ability to manage Peru's expanding oil production and an adequate supply of oil for the Talara refinery expansion when complete," added Zuniga.
PetroTal shares were trading 2.1% higher in London on Friday afternoon at 30.11 pence each.
By Evelina Grecenko; evelinagrecenko@alliancenews.com
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