1st Jul 2014 10:13
LONDON (Alliance News) - Max Petroleum PLC Tuesday said that in June it commissioned a new oil pipeline and an associated oil terminal facility, connecting its Zhana Makat field with the regional oil export pipeline, roughly 10 kilometres away.
The Kazakhstan-focused oil and gas company said it is now possible to deliver oil directly from its Zhana Makat central processing facility to the national Kazakh pipeline network, enabling direct delivery of both domestic and export oil sales.
The company said oil produced at the Zhana Makat, Borkyldakty, Sagiz West and East Kyzylzhar I fields can now be transported to end users using this pipeline at a transport cost saving of roughly USD4.0 per barrel.
However, Max Petroleum said Asanketken field production will continue to be transported to a terminal closer to that field.
The company said that the amount of oil being delivered via the pipeline is now being ramped up to a total of roughly 3,400 barrels of oil per day, which represents the total available volume to be transported through the line.
Max Petroleum also said that it expects the process to save it roughly USD4.9 million in annualised transport costs once the ramp-up process is complete.
The company said it hopes that the volume being transported through the pipeline can increase further as production is increased from its Sagiz West and East Kyzylzhar I fields once continuous trail production starts from the sites, which is expected in 2015.
Max Petroleum shares were up 11% to 1.30 pence, putting it amongst the top AIM All-Share risers on Tuesday.
By Tom McIvor; [email protected]; @TomMcIvor1
Copyright 2014 Alliance News Limited. All Rights Reserved.
Related Shares:
MXP.L