Petro Matad, Shell Agree Block IV, V Exit Deal

Petro Matad’s affiliate Central Asian Petroleum Corporation Limited (CapCorp) has reached an agreement with Shell's affiliate company BG Mongolian Holdings Limited (BGMH), in relation to the latter firm’s exit from the Mongolian Block IV and V Production Sharing Contracts.

As part of the deal, Shell's affiliate will pay an exit amount of $10,005,303, as stipulated by the farmout agreement, and will pay a further $5,000,000 upon completion of the reassignment. This further amount is refundable to Shell's affiliate, should CapCorp secure a partner for any of the two Blocks during the exploration period or any extension of exploration period.

Any farmout entered into by CapCorp with a third-party company will be at its discretion. The reassignment of BGMH's 78 percent working interest back to CapCorp is subject to government consent.

"I am very pleased that Shell and Petro Matad were able to conclude this agreement. The cash to be provided by Shell will enable the company to continue its planned work program culminating in exploration drilling next year,” said Enkhmaa Davaanyam, Petro Matad chairperson, in a company statement.



Have a news tip? Share it with Rigzone!
Email news@rigzone.com

WHAT DO YOU THINK?

Click on the button below to add a comment.
Post a Comment
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.

Related Companies
Events  SUBSCRIBE TO OUR NEWSLETTER

Our Privacy Pledge
SUBSCRIBE

More from this Author
Rigzone Staff
e-mail us at news@rigzone.com
 -  TRACE Secures INPEX Deal, Creates Jobs (Jun 23)
 -  What Are the Qualifications to Become ... (Jun 23)
 -  SolstadFarstad Emerges After Company M... (Jun 22)
 -  Gas Leak at Gjoa (Jun 22)
 -  Total Energy Services Completes Savann... (Jun 21)


Most Popular Articles

From the Career Center
Jobs that may interest you
Project Manager
Expertise: Contracts Administration|Planner / Scheduler|Project Management
Location: Henderson, CO
 
Project Manager (Subs)
Expertise: Project Management
Location: Bremerton, WA
 
Senior Accountant
Expertise: Accounting|Asset Management
Location: Tulsa, OK
 
search for more jobs

Brent Crude Oil : $45.54/BBL 0.70%
Light Crude Oil : $43.01/BBL 0.63%
Natural Gas : $2.929/MMBtu 1.34%
Updated in last 24 hours