Ruspetro, the FTSE 250 oil and gas group, saw shares surge on Friday morning after Russian authorities granted the company a licence extension for its Palyanovsky Block.
The Ministry of Natural Resources and Ecology of the Russian Federation said that if Ruspetro complies with new regulations on gas utilisation, the newly extended licence, currently due to expire in December 2015, would be extended for the economic life of the field, currently indicated to be 2063, upon review at the end of 2105.
MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
In connection with new regulations concerning associated petroleum gas flaring in Russia, the licensing authorities have introduced a new condition regarding gas utilisation into the newly extended license.
Ruspetro said that it is currently implementing a programme for gas utilisation that it expected to be completed by the end of 2014.
Palyanovsky covers 180.5 square kilometres with proved and probably reserves of 610m barrels, according to estimates earlier this year.
BC
-
Pensions IHT reform: major changes needed says former ministerExperts are calling on the government to make the system for applying inheritance to pensions ‘more effective, efficient and humane’
-
MoneyWeek turns 25: Vote for your favourite MoneyWeek cover in our pollPoll As MoneyWeek reaches an important milestone, we’re inviting readers to choose their favourite cover from over the years. Vote in our poll.
