PetroTal Corp - oil & gas development and production company - Executes final agreements with Petroperu SA to complete the restructuring of the contingent liability and to extend the oil sales contract for an additional two years. PetroTal says it and Petroperu have agreed to resolve the entire contingent liability that arose due to the significant reduction in oil prices in early 2020. Based on the average oil price for November 2020, the contingent liability was USD16.6 million.
Turning to oil sales contract, PetroTal says the parties have amended certain terms. To minimize the future price differential, Petroperu will use their best efforts to sell the oil at the best market conditions.
"This agreement with Petroperu that ensures future oil sales into the Northern Oil Pipeline, along with settlement of the contingent liability, significantly enhances PetroTal's operations," says President & Chief Executive Manuel Zuniga-Pflucker.
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By Evelina Grecenko; evelinagrecenko@alliancenews.com
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PetroTal (PTAL)