Tuesday, May 01, 2012 -
Kazakh-focused explorer and producer Jupiter Energy said Monday it has secured a price of $363 per ton of crude on its initial production to be paid by two oil traders.
The traders agreed to a prepayment plan to purchase 6,613 tons of the first oil the firm raises from its prospect in western Kazakhstan for $2.4 million. That works out as $58 per barrel.
“We are pleased that we have been able to reach terms for the presale of oil,” said Jupiter Energy chairman Geoff Gander in a statement.
“It provides the oil traders with security of supply and Jupiter Energy with cash to assist in the continued development of Block 31,” he added.
The traders have already paid $1.2 million and will pay the outstanding in early May, Jupiter Energy said.
The Australian company said earlier this week it has begun trial production from onshore oil and gas field Block 31, located close to the port city of Aktau in the oil-rich Mangistau Basin.
The firm expects the trial production period to last three years. During this time, the oil will be sold at discount rates within Kazakhstan. Once Jupiter ramps output to full production, the crude will be exported at prevailing prices.
“More detail on the plans to move to full production will be released in the second half of this year,” the company said.