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Nostrum dishes out USD 150m gas treatment facility contract in Kazakhstan

31st July 2014

Nostrum Oil & Gas has entered into a contract with OGCC KazStroyService JSC for the construction of the third unit of the Nostrum’s gas treatment facility (GTF) for a consideration of USD 150m

Nostrum Oil and Gas awards gas treatment facility contract worth USD 150m in Kazakhstan
Nostrum also released its second quarter report this week, which has seen the company’s average daily production rise to 46,596 boepd

“I am delighted that we continue to make good progress with the construction of GTU3,” said Kai-Uwe Kessel, Nostrum chief executive. “This construction contract forms a major part of the overall project. I believe we are now well positioned to deliver the plant on time and on budget. We look forward to working on the continued construction of GTU3 and doubling production by the end of 2016.”

As the contractor is an affiliate of KazStroyService Global B.V. (KSS Global), which currently owns approximately 26.6 per cent of Nostrum’s ordinary shares, the construction contract is a related party transaction for the purposes of the listing rules.  Accordingly, the construction contract is subject to the requirements of the listing rules and is conditional, inter alia, upon approval by the shareholders of the company.  As required by the listing rules, KSS Global has undertaken not to vote on the resolution to approve the construction contract at the general meeting of the company’s shareholders to be convened in due course.

Nostrum also released its second quarter report this week, which has seen the company’s average daily production rise to 46,596 boepd.

“I am delighted with the continued success we have enjoyed both operationally and financially over the first half of 2014,” said Kessel.

“Operationally we continue to outperform our yearly production target of 45,000boepd. The operational outperformance combined with the high oil price puts us well ahead of our financial targets for the year. We continue to enjoy a healthy cash position and low leverage whilst maintaining significant progress with GTU3. We look forward to completing GTU3 on time and on budget to deliver 100,000 boepd by the end of 2016.”

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