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PetroNeft Resources PLC - Russia-focused oil and gas exploration and production company - Announces that petroleum and fertilizer company Nord Imperial LLC has temporarily suspended the oil acceptance and transfer from licence 61. PetroNeft is the 50% owner and operator of this licence. Acceptance and transfer are suspended until the debt claimed on the contract terms is paid in full. Company explains it now has no other export route from licence 61 and is now progressively shutting down its wells until the situation can be resolved.
Chief Executive David Sturt says: ‘We believe Nord Imperial has, for many years, been acting in a monopolistic manner, charging non-competitive tariff rates. The suspension of acceptance of our oil, whilst disappointing, will not change our determination to seek an equitable solution for both parties.’
The company, in 2021, started remitting payments to Nord Imperial at a reduced level while, at the same time, launching a series of legal cases against Nord Imperial. This was as PetroNeft believed it had ‘for some time’ considered its contract tariff terms to be ‘significantly higher than normal rates.’ These actions led to Nord Imperial's response.
PetroNeft assures that production from Licence 67 is unaffected by the siutaiton.
Current stock price: 0.65 pence, down 28% on Tuesday in London
12-month: down 81%
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