Aladdin Oil & Gas Company ASA (AOGC) has signed a gas sales contract with KomiRegionGaz, a GazProm company. This contract will secure gas off-take from our gas field in the Middle Sediolskaya license in the Komi region in Ukhta.

AOGC has signed a 5 years contract for off-take of gas to KomiRegionGaz, a subsidiary of GazProm.This contract will secure delivery of 125 000 m3/d through-out 2009. Off-take volume will be adjusted every quarter, whereas the price will increase according to the domestic gas price development (FST). Gas price for last quarter of 2009 is RUB 1770,- pr 1000 m3 (USD 60). This is a considerable achievement for the company and will, through good cooperation with KomiRegionGaz/GazProm, ensure a position as an independent oil and gas producer in Russia.

Aladdin has during 2008 and 2009 developed its first gas field in Russia, on field #1 in the Middle Sediolskaya license in Uktha. The gas field has a considerable upside potential and will be developed with adjacent gas discoveries.

”This contract is of great importance for our company, a result of hard work and dedicated development process towards production. This is a giant step towards becoming a serious independent oil and gas producer in Russia”. – quotes managing director Pål Nedrelid.

Tags: Aladdin Oil & Gas Company, Gazprom