Icon Energy, Shantou Sino Energy Extend Deadline for Gas Sales Agreement
Icon Energy Limited reported Friday that the company and Shantou Sino Energy Co. Ltd., of the Peoples’ Republic of China, have agreed to extend the completion date for conditions precedent in the Gas Sales Agreement in place for 40 million tons of liquefied natural gas (LNG), (2 million tons per annum for 20 years).
The new date for completion of “Conditions Precedent” as detailed below is, on or before June 30.
The LNG Sales Agreement, signed by both parties in March 2011, includes the following conditions precedent with amended date of June 30, 2018:
(a) In favour of Shantou Sino Energy Co Ltd (as the Buyer of LNG):
- Buyer obtaining any necessary import approvals on or before June 30, 2018 from Chinese Government Authorities to allow the construction and operation of the Receiving Facilities and the purchase and import by it of LNG under the LNG Sales Agreement
- Buyer delivering to Seller on or before June 30, 2018 the written certification of a Rating Agency specifying for Buyer a credit rating of AAA (where the Rating Agency is S&P) or Aaa (where the Rating Agency is Moody’s)
(b) In favour of Icon (as the Seller):
- Seller delivering to Buyer by on or before June 30, 2018 a Reserves Certificate of at least 2.0 trillion cubic feet (Tcf) of Proven and Probable Reserves (2P) of Natural Gas (which the Parties agree is a sufficient quantity of Natural Gas to enable Seller to comply with its LNG supply obligations to Buyer under the LNG Sales Agreement)
- Seller obtaining by on or before June 30, 2018 all required authorizations (including for the development and operation of any feedstock fields and LNG facilities) on terms satisfactory to Seller in its sole discretion
ATP 855 – Current Status
As of June 25, there is no change to the previously announced gas resource estimates in ATP 855 in the Cooper Basin.
DeGolyer and MacNaughton, a leading United States based independent consulting firm focussed on the petroleum industry, provided a report on the Gross Unconventional Prospective Resources in ATP 855, which Icon announced to the market June 19, 2014, and which is summarized as follows:
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