REG - Nostrum Oil & Gas - Processing Agreement extension with Ural Oil & Gas

Nostrum Oil & GasAnnouncement

21/03/2025 07:00

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RNS Number : 5735B  Nostrum Oil & Gas PLC  21 March 2025

 

 

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RELEVANT LAWS OF THAT JURISDICTION

 

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION

 

FOR IMMEDIATE RELEASE

 

 

London, 21 March 2025

 

Zhaikmunai Processing Agreement extension with Ural Oil & Gas

 

Nostrum Oil & Gas PLC (LSE: NOG) ("Nostrum", or the "Company" and together
with its subsidiaries, the "Group"), an independent mixed-asset energy company
with world class gas processing facilities and export hub in north-west
Kazakhstan, today announces that its wholly-owned subsidiary Zhaikmunai LLP
("Zhaikmunai") has entered into a binding agreement to extend its processing
of third-party hydrocarbons delivered by Ural Oil & Gas LLP ("Ural
O&G") on new terms until May 2031.

 

Ural O&G operates the Rozhkovskoye field, just 20 kilometres from
Zhaikmunai's processing facilities, and is a joint venture between NC
KazMunayGas (50% shareholder), MOL Group ("MOL") (22.5% shareholder) and
FIOC-Sinopec (27.5% shareholder). The previous agreements, signed in 2018, for
the processing  of raw gas and liquid condensate from Ural O&G was set to
 expire in December 2027.  The new processing agreement effective from March
21, 2025 will extend to May 26, 2031.

 

Production from the Rozhkovskoye field began in December 2023, with the first
well producing 0.3mm cubic meters of raw gas per day according to MOL, and
four additional wells expected to further boost production to 1.5mm cubic
meters of gas per day. Also, as announced by MOL in December 2023, the
expected gas and condensate volumes recoverable from the Rozhkovskoye field
were 158.8 mmboe, comprising gas 101.5 mmboe and condensate 57.3 mmboe, based
on the Kazakhstan State Balance Reserves Report.

 

Arfan Khan, Chief Executive Officer of Nostrum Oil & Gas, commented:

 

"This extended processing agreement is value accretive to the current
agreement and demonstrates the continuing success of Nostrum's mixed-asset
strategy and its capabilities as a reliable and efficient operator and
partner. Securing additional third-party hydrocarbon feedstock through to
2031, together with Nostrum's plans to develop the upstream Stepnoy Leopard
fields, represent important steps towards meaningfully increasing the
utilisation of Nostrum's world class processing facilities that will help
shape a robust growth-oriented business plan for the next decade. At the same
time, we recognize that the extended agreement is mutually beneficial for Ural
O&G enabling further field development of the Rozhkovskoye field  to the
fullest extent."

 

 

LEI: 2138007VWEP4MM3J8B29

 

Further information

For further information please visit www.nog.co.uk (http://www.nog.co.uk)

 

Further enquiries

Nostrum Oil & Gas PLC
 

Petro Mychalkiw

Chief Financial Officer

ir@nog.co.uk (mailto:ir@nog.co.uk)
 
 

 

Instinctif Partners -
UK
 

Galyna Kulachek

Amelia Thorn

+ 44 (0) 207 457 2020

nostrum@instinctif.com (mailto:nostrum@instinctif.com)

 

Notifying person

Thomas Hartnett

Company Secretary

 

About Nostrum Oil & Gas

Nostrum Oil & Gas PLC is an independent mixed-asset energy company with
world-class gas processing facilities and export hub in north-west Kazakhstan.
Its shares are listed on the London Stock Exchange (ticker symbol: NOG). The
principal producing asset of Nostrum Oil & Gas PLC is the Chinarevskoye
field which is operated by its wholly-owned subsidiary Zhaikmunai LLP, which
is the sole holder of the subsoil use rights with respect to the development
of the Chinarevskoye field. The Company also owns an 80% interest in Positive
Invest LLP, which holds the subsoil use rights for the "Kamenskoe" and
"Kamensko-Teplovsko-Tokarevskoe" areas in the West Kazakhstan region (the
Stepnoy Leopard fields).

 

Forward-Looking Statements

Some of the statements in this document are forward-looking. Forward-looking
statements include statements regarding the intent, belief and current
expectations of the Company or its officers with respect to various matters.
When used in this document, the words "expects", "believes", "anticipates",
"plans", "may", "will", "should" and similar expressions, and the negatives
thereof, are intended to identify forward-looking statements. Such statements
are not promises nor guarantees and are subject to risks and uncertainties
that could cause actual outcomes to differ materially from those suggested by
any such statements.

 

No part of this announcement constitutes, or shall be taken to constitute, an
invitation or inducement to invest in the Company or any other entity, and
shareholders of the Company are cautioned not to place undue reliance on the
forward-looking statements. Save as required by the relevant listing rules and
applicable law, the Company does not undertake to update or change any
forward-looking statements to reflect events occurring after the date of this
announcement.

 

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