Medoilgas Italia Renews Gas Contract

Medoilgas Italia, subsidiary of London-based explorer Mediterranean Oil & Gas, has signed a gas sales contract with Repower Italia. The contract covers the company's entire net gas production from the Guendalina gas field for a period of one year from October 1 2013.

The arrangement repeats the contract for Guendalina gas that runs until September 30 this year. 

The new contract includes an option for MO&G to sell all or part of its onshore Italy gas production that is connected to the Italian gas distribution network to Repower at the same 'take and pay' terms. Around 75% of the company's onshore Italy gas production is connected to the gas distribution network, with the rest sold to local customers.

In a statement, Dr Bill Higgs, chief executive of MO & G, said: "We are very pleased to renew our relationship with Repower until the end of the thermal year ending in 2014. Repower has proven to be a good customer in what continues to be a challenging gas market in Italy."