• Natural Gas News

    Nostrum gives up Kazakh field

Summary

The company gave up rights to two other fields in October last year.

by: Joseph Murphy

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Complimentary, NGW News Alert, Natural Gas & LNG News, Asia/Oceania, Corporate, Exploration & Production, News By Country, Kazakhstan

Nostrum gives up Kazakh field

Kazakhstan-focused Nostrum Oil & Gas has given up rights to the Rostoshinskoye field in the country's west, the company said on August 25, noting it considered this a more lower cost option than keeping the permit for another year.

Nostrum, formerly known as Zhaikmunai, acquired Rostoshinskoye in 2013 along with two other fields near its flagship Chinarevskoye field. The exploration period under Nostrum's contract for Rostoshinskoye had been due to end in August 2022. The field's contingent resources were assessed at 31.3mn barrels of oil equivalent at the end of last year.

Nostrum has endured a difficult few years, amid production setbacks, the delayed completion of a gas treatment unit and low oil prices. Its revenues were almost unchanged year on year in the first half at $92.3mn, as a slide in production to 18,107 barrels of oil equivalent/day from 23,528 boe/d more than offset the gain from higher oil prices.

The company's core earnings (Ebitda) came to $52.8mn in the six-month period. It is currently in the process of restructuring its debt, which was estimated at $1.1bn at the end of last year. Nostrum gave up rights to the two other fields it obtained in 2013, Darinskoye and Yuzhno-Gremyachenskoye, in October 2020.