Petroneft Resources PLC Export of Crude Oil (6808M)
23 Septiembre 2021 - 1:00AM
UK Regulatory
TIDMPTR
RNS Number : 6808M
Petroneft Resources PLC
23 September 2021
23 September 2021
PetroNeft Resources plc ('PetroNeft' or 'the Company')
Export of Crude Oil
PetroNeft (AIM: PTR) an oil & gas exploration and production
company, operating in the Tomsk Oblast, Russian Federation, and 90%
owner and operator of Licence 67 and 50% owner and operator of
Licence 61 is pleased to announce the following operational
news.
Highlights
o Export oil sales to commence from 1(st) October.
On 21(st) September a contract was signed to start exporting oil
from Licence 61. Commencing 1(st) October, our export oil will be
transported to Kozmino port, which is the major Russian oil export
terminal servicing Asia Pacific markets, located close to
Vladivostok. The oil will be priced with reference to Dubai Oil
price, which is intrinsically of a higher quality than Urals, the
main Russian crude exported to European markets, and is therefore
priced with reference to oil in Asian markets, which are typically
higher than Europe.
Initially PetroNeft will export between 25%-30% of its
production from Licence 61, however PetroNeft has the right to
increase or decrease this volume, on a monthly basis, depending on
market conditions.
Historically the Company has sold 100% of its oil production on
the Russian domestic market. This has provided stability and
attractive cash flows but due to the ongoing Mineral Extraction Tax
(MET) reform that aims to gradually reduce export duty, the export
market is becoming increasingly attractive compared to the domestic
market. Opening the export market offers a greater diversity for
the business thereby increasing opportunity. The move may also open
the potential of export financing - this would be a potentially
attractive alternative source of funding for the business as we
formulate our plans for the development of both Licence 61 and
Licence 67.
David Sturt, CEO PetroNeft commented:
"This is a fantastic achievement by our team in Tomsk, it
enables the Company to diversify market risk by allowing us to
dynamically select between either the domestic or the Asian export
market for our crude sales. This will provide the Company with the
potential to further improve margins which is especially beneficial
within the Russian production tax system where MET is a fixed rate
per ton of oil produced that is set by the State depending mainly
on the international oil price, so any improvements in margins are
retained by the Company.
It is also very important to us as it may open another potential
capital stream for investment as we develop our assets. This will
help us to increase production, cash flow and reserves"
For further information, contact:
+971 55 1919
David Sturt, CEO, PetroNeft Resources plc 808
+353 1 679
John Frain / Ciara O'Mongain, Davy (NOMAD and Broker) 6363
+353 1 498
Joe Heron / Douglas Keatinge, Murray Consultants 0300
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END
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September 23, 2021 02:00 ET (06:00 GMT)
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