Sumatec says CaspiOilGas inks pre-sale gas deal with Kazakh firm

Sumatec manages and operates oil production operations at the Rakushechnoye oil and gas field in Kazakhstan

KUALA LUMPUR: Sumatec Resources Bhd's partner CaspiOilGas LLP (COG) has inked a pre-sale gas agreement to sell gas to NIPIneftegas Consortium in Kazakhstan over 15 years.

Sumatec said on Monday COG would be selling 6.2 billion cubic metres of gas or 36.5 million barrels of oil equivalent (BOE) at market gas price.

NIPI led Consortium will convert the feed gas into petroleum products through a proprietary gas to liquid (GTL) technology.

It said NIPI, which has its headquarters in Aktau, had invested in a wide range of technical and commercial services for the development of onshore and offshore oil and gas fields.

The proposed capital expenditure for the gas utilisation plan which is tied to the gas development production agreement between Sumatec and COG will start at US$60mil.

The total capex of the plant over the period to bring it to full capacity will be US$360mil. 

The first phase of the plant operation is expected to start in 2019. 

Sumatec said the NIPI led consortium will fund and operate the GTL plant will be funded and operated by. 

“The presale gas Agreement allows for COG or Sumatec to take up participating equity in the GTL plant at a later date if either party chooses to opt in.

“Sumatec will receive share of the oil/condensates produced, as well as the fee for processing the raw gas prior to the sale/supply to NIPI,” it said.