3rd Jul 2014 10:02
LONDON (Alliance News) - Urals Energy PCL Thursday provided details of a contract it entered into with Petraco Oil Co Ltd in August 2012, for Urals to sell all of the oil it produces at the Arcticneft property.
The Russia focused oil and gas company said the contract replaced an original contract with Petraco which was entered into during September 2006 and is broadly comparable to the terms of that contract.
The company said the contract is a master sales contract which governs the terms of its sales from the Arcticneft site, including a formula for calculating the sale price of the oil based on the Brent Crude oil price plus a premium.
Urals said the exact commercial terms of each tanker shipment will be determined each year by way of slight changes to the contract, which details specific quantities, delivery details and the final sales price.
A total of nine reservoirs are producing at the Arcticneft field, and in 2013 the company produced 250,426 barrels of oil from the site.
Urals Energy shares were down 0.8% to 4.47 pence on Thursday.
By Tom McIvor; [email protected]; @TomMcIvor1
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