December 27 (SeeNews) - Oil and gas exploration company Serinus Energy Romania said it has signed a gas sales agreement with Vitol Gas and Power BV for part of its future output from the Moftinu project.
The agreement targets gas quantities which are not required to be sold on a centralised market, Serinus said in a press release earlier this week.
The term of this agreement will be from the start of production until the end of the following gas year, with an option for an extension after that time. The gas year runs from October until the end of September.
The deal provides Serinus with flexibility in nominating quantities for each delivery month, which is especially important for the commissioning period of the Moftinu gas plant and for meeting its obligations to sell the remaining quantities directly into the centralized markets of Romania.
There are two established gas trading markets in Romania where the company is a member and through which it will sell its remaining production in the open market, once production has commenced.
In November, Serinus said it fears that some technical issues will cause delays in starting full production at its Moftinu gas plant in Romania. Serinus also said that that flow-testing from three of the deeper zones of its Moftinu-1003 well has produced gas.
The Moftinu gas field, discovered by Serinus in 2014, is the catalyst for future, self-funded, growth in the Satu Mare concession, according to the company. Satu Mare is a 729,000 acre exploration block which is 60% owned and operated by Winstar Satu Mare SRL, a wholly owned subsidiary of Serinus.
Serinus is an international upstream oil and gas exploration and production company with a diversified portfolio of projects in Tunisia and Romania.