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Nostrum Oil & Gas PLC announced on March 21, 2025, that its wholly-owned subsidiary Zhaikmunai LLP has entered into a binding agreement to extend its processing of third-party hydrocarbons from Ural Oil & Gas LLP. This new agreement is effective from March 21, 2025, and extends the processing period until May 26, 2031, replacing the previous agreement signed in 2018 which was set to expire in December 2027. Ural O&G's Rozhkovskoye field, which began production in December 2023, had its first well producing 0.3mm cubic meters of raw gas per day.
| Date | 21 Mar 2025 |
| Time | 07:00:05 |
| Category | Acquisitions and alliances |
| ID | 5735B |
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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
Instinctif Partners - UK
Galyna Kulachek
Amelia Thorn
+ 44 (0) 207 457 2020
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.