The Board of Mediterranean Oil & Gas Plc announce that its subsidiary Medoilgas Italia SpA has signed a gas sales contract with Repower Italia SpA relating to the Company’s entire net gas production from the Guendalina gas field for a period of one year from 1 October 2013 until 30 September 2014.
Repower has purchased all of the Company’s production from Guendalina since 1 April 2012 under an existing contract that is valid until 30 September 2013.
The new contract includes an option for the Company to sell all or part of its onshore Italy gas production that is connected to the Italian gas distribution network to Repower at the same ‘take and pay’ terms. Currently approximately 75% of the Company’s onshore Italy gas production is connected to the gas distribution network. The remaining 25% is sold to local customers.
Dr. Bill Higgs, Chief Executive of Mediterranean Oil & Gas, commented:
“We are very pleased to renew our relationship with Repower until the end of the thermal year ending in 2014. Repower has proven to be a good customer in what continues to be a challenging gas market in Italy.”
Press Release, March 21, 2013; Image: MOG