Wednesday, March 21, 2018

Urals Energy to sell all Arcticneft oil to Petraco

Independent oil exploration and production company Urals Energy announced last Thursday that it will sell all of the oil produced by subsidiary Arcticneft to Petraco Oil.

The sale of Arcticneft's oil assets to Petraco comes as part of the agreement Urals Energy entered with Petraco in 2012 as a continuation of a 2006 agreement. Sources close to both companies confirmed that the details of the 2006 and 2012 contracts are largely the same, StockMarketWire reports.

Broadly, the 2012 contract is a master sales agreement which governs the transactional terms and conditions between Urals Energy and subsidiaries and Petraco.

Additionally, the contract includes a formula for calculating the sale price of oil between Urals Energy and Petraco based on Brent Crude oil price plus expenses for tanker shipment, according to StockMarketWire.