NOT FOR RELEASE, PUBLICATION OR
DISTRIBUTION, IN WHOLE OR IN PART, IN, INTO OR FROM ANY
JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE
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
Further enquiries
Nostrum Oil & Gas PLC
Petro Mychalkiw
Chief Financial Officer
ir@nog.co.uk
Instinctif Partners -
UK
Galyna Kulachek
Amelia Thorn
+ 44 (0) 207 457 2020
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.
