Canadian-listed oil and gas company Sterling Resources has entered into a gas sales agreement with British Gas Trading Limited (BGT), a subsidiary of Centrica plc.
Sterling said on Friday that the agreement provides for its share of Breagh field nominated gas volumes to be sold on a day-ahead basis to the UK reference price at the National Balancing Point (NBP).
The Breagh field, in the UK sector of the North Sea, is operated by Ineos with 70% interest, while Sterling holds the remaining 30% interest. Ineos bought its interest in the field at the end of last year from a UK subsidiary of DEA Deutsche Erdoel AG.
Sterling added that the agreement is valid for a minimum two-year period with gas made available to BGT starting October 1, 2016. The agreement replaces the gas trading and services agreement with Vitol SA which expires on October 1, 2016.
“We are pleased to enter into this agreement with British Gas Trading Limited who are a leading gas marketing company within the UK,” commented John Rapach, CEO of Sterling Resources Ltd.
He added, “The agreement provides for a secure gas sales arrangement for the company’s interest gas production from the Breagh Field over the next two years.”