Prospex Energy plc said that a gas sales agreement (GSA) had been signed for the Selva Malvezzi joint venture (JV) production concession in the Po Valley of Italy.
FIRST GAS
The deal is between the operator Po Valley Operations Pty Ltd (63%), a wholly owned subsidiary of Po Valley Energy Ltd, and BP Gas Marketing Ltd (BPGM)*.
Under the terms, BPGM will purchase the forecast gas production from the Podere Maiar-1 production facility, expected to be soon completed.
The 18-month GSA will begin on 1 April 2023 with the potential for an extension.
Prospex (37% working interest) added that an estimated 37 million standard cubic metres of natural gas was expected to be supplied to BPGM.
The JV is fully funded to complete the Podere Maiar-1 production facility development and first gas is on course for early Q2 2023.
OPTIMISATION
“We are delighted that Po Valley has secured the agreement with BP Gas Marketing Limited, a recognisable brand in the industry, to take delivery and sell our gas and look forward to working with them,” added chief executive Mark Routh.
“Prospex is selling its share of the gas production jointly with the operator, Po Valley, under a joint marketing agreement, in order to optimise the value of our gas sales.”
*BPGM is an indirect, wholly owned subsidiary of BP International Ltd