Kazakh Firm Delays Gas Deliveries to Nostrum

Kazakhstan-focused Nostrum Oil & Gas announced on March 9 that gas deliveries from local firm Ural Oil & Gas (UOG) would be delayed, marking a setback in its efforts to increase utilisation of its gas processing capacity.

Nostrum reached a deal in August 2018 to process hydrocarbons delivered by UOG. UOG, owned by Kazakhstan's state-owned KazMunaiGas, China's Sinopec and Hungary's MOL, plans to develop the Rozhkovskoye field some 20 km from Nostrum's main asset, the Chinarevskoye project.

"UOG is working on a new timetable for delivery of gas to Nostrum," Nostrum said in a statement, without revealing when deliveries had been originally scheduled to start.

"Despite this delay, UOG management expressed full commitment to deliver the gas before any penalties arise under the existing agreements, which would require gas to be delivered before April 3 2023," it said.

Nostrum has endured several difficult years of production decline, operational setbacks and financial losses. It mooted plans to sell all or part of its business last summer but has been unable to find a buyer. As such, it has shifted its focus to commercialising its spare gas processing capacity, having halted all drilling to cut costs.