Independent energy company Nostrum Oil & Gas PLC has said that its unit Zhaikmunai LLP agreed to continue processing third-party hydrocarbons delivered by Ural Oil & Gas LLP under new terms until May 2031.
Ural O&G operates the Rozhkovskoye field, just 20 kilometers (12.4 miles) from Zhaikmunai’s processing facilities in northwest Kazakhstan. Rozhkovskoye is a joint venture between NC KazMunayGas (50 percent), MOL Group (22.5 percent), and FIOC-Sinopec (27.5 percent), Nostrum noted.
Earlier agreements signed in 2018 concerning the processing of raw gas and liquid condensate from Ural O&G are due to expire in December 2027. The new processing agreement, starting from March 21, 2025, will be valid until May 26, 2031, Nostrum said.
Production from the Rozhkovskoye field began in December 2023, with the first well producing 0.3 million cubic meters of raw gas per day, and four additional wells are expected to further boost production to 1.5 million cubic meters of gas per day, according to MOL. MOL said December 2023 the expected gas and condensate volumes recoverable from the Rozhkovskoye field were 158.8 million barrels of oil equivalent (mmboe), comprising 101.5 mmboe of gas and 57.3 mmboe of condensate.
“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 utilization of Nostrum’s world-class processing facilities that will help shape a robust growth-oriented business plan for the next decade”, Arfan Khan, Chief Executive Officer of Nostrum, said.
“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”.
To contact the author, email andreson.n.paul@gmail.com
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