MOG Signs New Guendalina Gas Sales Contract with Repower Italia

Mediterranean Oil & Gas (MOG) has reached an agreement to terminate a gas purchase contract with Energetic in relation to gas production from the Guendalina field in Italy. The current agreement for gas purchase will end on the 31st of March 2012.

The deal between MOG subsidiaries Medoilgas Italia and Energetic was reached in January of this year to commence from the 1st of February 2012. Through the deal, Medoilgas transferred its net production from the field to Energetic.

A new contract between MOG and Repower Italia will now commence immediately following the termination of this supply deal. Through this deal, Medoilgas will transfer its gas production from the gas field to Repower to begin from the 1st of April 2012.

This deal follows on from one previously signed between the two companies to cover the supply of gas for one "thermal" year to cover the period from the 1st of October 2012 and terminating on the 31st of September 2013. This contract will automatically renew year-on-year unless ceased by one or both parties.

MOG is a 20 per cent stakeholder in the Guendalina field, located in the Adriatic Sea. Eni holds the other 80 per cent stake.