(Alliance News) - PetroNeft Resources PLC on Wednesday said that Stimul-T LCC, the operator of Licence 61, has filed for bankruptcy administration in Russia.
PetroNeft is an oil and gas exploration company, focused on Russia. Shares in the company plummeted by 26% to 0.20 pence in London on Wednesday afternoon.
Petroneft and its joint venture partner, Oil India International BV, are the only shareholders in the Cyprus-registered company, WorldAce Investment Ltd. WorldAce owns 100% of the voting equity in Stimul-T, which owns and operates Licence 61 in the Tomsk.
Following a long-running tariff dispute between Stimul-T and Nord Imperial, which owns the pipeline connecting Licence 61 to the Transneft system, the pipeline was shutdown last August.
Despite numerous meetings between Stimul-T, NI and other stakeholders, and the continuing litigation proceedings, a resolution has not been achieved.
Stimul-T had to suspend all operation on the oil fields in Licence 61 at the beginning of the fourth quarter last year, which resulted in no revenue to pay its debts as they fall due. Stimul-T is now legally obligated, under the bankruptcy laws of the Russian Federation, to submit an application for bankruptcy administration.
Chair of PetroNeft Resources David Stuart said: "This is a very sad outcome; we have been trying to find a mutually beneficial solution which would have enabled us to continue operations at Licence 61. Although there have been numerous encouraging meetings in Tomsk, nothing has been forthcoming.
"If a resolution is found which would enable production to recommence and allow exports through the NI pipeline to market, it may be possible to reverse the bankruptcy process for the benefit of all stakeholders."
By Will Neill, Alliance News reporter
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