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Highlights

  • Nostrum Oil & Gas extends its agreement with Ural O&G for gas processing until 2031
  • New deal covers hydrocarbons from the Rozhkovskoye field in Kazakhstan, boosting production
  • The agreement secures additional third-party feedstock and strengthens Nostrum’s growth strategy

Nostrum Oil & Gas PLC (LSE:NOG), an independent mixed-asset energy company with gas processing facilities in north-west Kazakhstan, has announced the extension of its agreement with Ural Oil & Gas LLP (Ural O&G). The agreement, effective from March 21, 2025, will enable Nostrum’s subsidiary, Zhaikmunai LLP, to continue processing hydrocarbons from Ural O&G until May 2031. This new deal supersedes the previous 2018 agreement, which was due to expire in December 2027.

Ural O&G operates the Rozhkovskoye field, located just 20 kilometers from Zhaikmunai's facilities. The field began production in December 2023, with the first well producing 0.3 million cubic meters of raw gas per day. The field's production is expected to increase significantly, with four additional wells anticipated to boost output to 1.5 million cubic meters of gas per day. The recoverable gas and condensate volumes from Rozhkovskoye are estimated at 158.8 million barrels of oil equivalent (mmboe), consisting of 101.5 mmboe of gas and 57.3 mmboe of condensate.

This extended agreement strengthens Nostrum’s position as a reliable operator and partner in the region. It also allows the company to secure additional third-party hydrocarbons, further increasing the utilization of its world-class processing facilities. This move is seen as an essential part of Nostrum’s long-term growth strategy, aligning with the development plans for its upstream Stepnoy Leopard fields.

Arfan Khan, CEO of Nostrum Oil & Gas, emphasized that the extended deal benefits both parties, enabling further development of the Rozhkovskoye field and contributing to Nostrum’s goal of increasing production and processing capacity through 2031.