LONDON (Alliance News) - Ruspetro PLC Friday said it has signed a further crude oil prepayment facility with Glencore Energy UK Ltd, a subsidiary of Glencore Xstrata PLC, for USD30 million.
The Russian oil and gas company said the deal renews and replaces its existing prepayment facility which it entered into with Glencore in August 2013.
The company said the facility is for a period of one year and requires RusPetro to deliver a minimum of 15,000 metric tonnes per quarter, or roughly 1,200 barrels of oil per day of crude oil to Glencore.
Ruspetro said USD10 million which is outstanding from its existing facility will be paid down in full as part of the new facility, resulting in net proceeds of USD20 million going to Ruspetro.
The company said the renewal of the prepayment facility will provide it with working capital in the lead-up to restart of development drilling from its oilfield in Western Siberia.
Ruspetro's Krasnoleninsk Arch assets include proved and probable reserves of over 1.8 billion barrels of oil equivalent.
By Tom McIvor; tommcivor@alliancenews.com; @TomMcIvor1
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